They had an ATM for around $45 million which i presume they recently took advantage of. At $37/share right now, an additional raise of 3-5 million shares could yield them another $185 million for a total of $220+ million in cash. Not bad. If they did that, i bet the street would view this as positive. Nothing wrong with having a large cash position and it would provide them with additional leverage when negotiating a partnership. Now, if they sign a partnership, it is quite likely SRPT will receive a large upfront payment. How much? $100 million? $200 million? More. They could end up at the end of the day with the ATM, equity raise and partnership with close to $500 million in cash. We would be trading close to cash. SRPT would be ridiculously undervalued
Just off the top of my head I believe the total amount on shelf is $100 mill (dollars, not shares) and PR publicly states raise for $40 mill (dollars) is all which has been announced--which I hope they did 2d ago. Lots of extra shares taken up by multiple warrants in the past and which are already diluting us more than 20% at present PLUS the $40 mill raise.
I'd rather wait and see what comes of partnership, etc.
I agree they need an equity raise, except fat chance that they will get anything above $30 unless the firm that provides them with it already shorted a bunch of shares above $40. Dilution is NEVER a positive for short term price movements.