Anyone care to explain what this means?
Is this a realignment to the current shelf?
or....a realignment to the new accounting principals?
or...preperation to a company buyout?
Very informative thread. Thank you all.
$4 before the July options expiration, ya?
SP is still way too underpriced for a buyout. Ever heard of a buyout at least 5X of recent pps? Could just use a major partnership deal at this level.
Warrants can't be exercised without making the registration statement effective. So the question is why now? This represents all of Ym's outstanding warrants. It is dilutive but also increases Ym's cash about $12MM. After the last offering I think we can rule out Ym approaching it's warrant holders because they need cash. So why would the warrant holders approach Ym? One reason could be, as woody stated, for tax purposes. When the warrant is exercised the holding period for common shares begins. Another reason could be that warrants do not offer voting rights. But other than these, I don't see anyreason why exercising now would benefit the holders as they have until March 2015. So here is one other possibility. Acquiring companies do not like the idea of warrant holders getting a stake in their company. Before a deal, warrants will get cleaned up. The holders will receive advance notice of such an event ( terms of warrants). So as long as we are speculating, is it possible Ym has an offer on the table and has approached its warrant holders? Let's see what the stock does this week. Things are getting interesting.
Great points. They definitely appear to be doing some housekeeping. It would be interesting to know how many warrant holders there are.
Also, the stock isn't trading much higher yet. I'd like to see these warrants converted before we're trading at $4-5.
The only thing I found in the filing that mentioned M&A was page S-9 that was discussing pipeline expansion.
It stated "We continue to evaluate opportunities to expand and diversify our development portfolio through licensing, acquisition or M&A activity. There are no proposed undisclosed material transactions that have progressed to a state where we believe that the likelihood of us completing such a transaction is high.".
One more thing I want to add to this hypothesis. I recently confirmed with James Smith at Ym that the next data read outs for cyt387 will be year end, ASH. This goes for the MRI data. The MRI data is significant and I believe to be the deal clincher for Ym. The trials are open label so companies doing DD will see this data before we hear about it. If we can't expect any big news until year end why are we trading higher on increasing volume? It has been my experience with small bios that they usually drift down without news flow. Anticipation of a partnership is usually not enough to sustain price. THLD comes to mind as an example of a bio I held that drifted down from 2.50 to 1.20 over a year because of no news flow and then went to 9 in two months. Warrant holders will know ahead of us if their is a deal on the table ( terms of warrants) creating an opportunity for a leak. This is pure speculation but it is fun. Lol. The price will tell.
"We intend to use any net proceeds from the exercise of the warrants to fund our drug development activities and for general corporate purposes. We have agreed not to use the proceeds of this offering for any purpose that would violate the Cuba sanctions or any licenses we have or in the future may obtain from OFAC."
Judging by that and a few other things, what I'm getting out of it is that they are issuing more stock to raise funds possibly for 997?
"We may issue the securities offered by this prospectus in the Province of Ontario, Canada, the United States and elsewhere where permitted by law for cash or other consideration:
to or through underwriters, dealers, placement agents or other intermediaries,
directly to one or more purchasers, or
in connection with acquisitions by the Corporation. "
It doesn't state who's relieving or receiving here
I've never really been the best with issuances or warrants, if it's outside a balance sheet or 10k it's not usually my forte :/
Looks to me that the shares are to be issued as a results of the excersize of warrents that are outstanding. They will issue the additional shares increasing both the outstanding shares and the float...
The warrants were issued as part of the share offering in March 2010. This prospectus is for the shares that the warrant holders are entitled to purchase at $1.60 each, with required adjustments to address dilution since March 2010.