I do not think they will dillute, not with 29 million in the coffers, unless they are considering buying a production facility. There isn't much you would do with that much money. Their website states they are considering selling Nexafed directly. Ocecta will still be produced by Pfizer.
Anybody out there live by a Kerr Drugs that can go look at where Nexafed is displayed? Is it behind the pharmacy counter like Sudafed, or is it in the isle shelves? Is there a limit to how many a customer can buy? I live in TN, and you can only buy one box of Sudafed at a time, and the pharmacy has to take your name.
I agree with you, mcubas76. I saw this mkt reaction as an opportunity to pick up some additional shares (and just did so).
Here are some comments I made last night after researching this a bit:
Looking at the effect of shelf registration on other stock prices.
Take a much more drastic case - Warren Resources -WRES:
They announced a shelf of $400mil on Feb 13 when their mkt cap was @ $285mil - 140 pct of the mkt cap. the stock had an initial drop in SP of 6 pct from 2.95 - 2.7 (later continued to 2.61). So, to compare, ACUR has already overreacted in AH
...Keep in mind that it is only a shelf registration - the OPTION for an offering. In my research, a small percentage of shelf filings lead to an offer. It is up to the market to rationally incorporate the probability of issuance when discounting the stock price. The market is often irrational......
I think that the people at ACUR are covering all their bases. If it gets sold, the directors get their golden parachute (hence the 8-K filing), and if they don't get bought, the have the green light to raise cash to ramp up their production. in the first scenario, shareholders will get rewarded quickly, the second scenario is longer term. whichever the case, I think this will go up big, sooner or later.
mcubas76 I agree wholeheartedly with your assessment. And I am praying that they have to use the golden parachute option !!! I hope Acura is acquired by June of this year. The big pharmas had so much money just sitting in the bank I just cannot see one of them picking us up. I am holding my shares strong !! Good luck all.