An Explanation of the Equity Deal for Longs- Part II
In summary, the company and it's bankers should be commended- they got a sterling execution at minimal discount and raised 100mm which truly gives this small biotech a "fortress" balance sheet with over 200mm in cash. ANYONE WHO SAYS OTHERWISE is a complete moron. Hopefully this was helpful.
One more thing- proof that Bargainmoron is an idiot, among other things- 1) he couldn't possibly explain what I just explained 2) he thinks a seeking alpha article affected the price- hahahaha. Yes, a seeking alpha article may help a pump and pump for a penny stock with low volume. This sucker did 8mm shares today- the volatility was based on the bullish execution of the equity deal and that some buyers (mostly retail) were flipping their 12.50 shares for a quick profit. That's it. With this deal out of the way, ACAD now had to deliver on succesful Pima news, then we are golden. Do idiot retail shorts like Bargainmoron know more than the company with respect to Pima? Of corse not. Is he a doctor or scientist? Of course not. So ignore this 100 share trading retail teenager. Any questions?
Good job spader, the only thing I would like to add is , offering was perfectly coincided with the semi-annual re-ranking of the NASDAQ Biotechnology Index (Nasdaq:NBI), which will become effective prior to market
open on Monday, May 20, 2013. I think that will apply additional buying pressure on ACAD.
btw Baker Bros.indicated an interest in purchasing an aggregate of approximately 20% percent of the common stock offered in this offering at the price offered to the public, also Fidelity spend some money for sure...