I think Applied Medical sold most of its 2.5M share war chest of Cardica stock trying to suppress the stock price after announcement of FDA clearance. Its been selling its shares in hopes of keeping Cardica shares cheap to make it harder for Cardica to raise money in a public offering, and at the same time, making it easier for Applied Medical to acquire Cardica. Now that J&J sold its blood business to Carlyle for $4B, J&J should be on the lookout for complementary acquisitions.
Is it not possible that this is the next share offering in action....insitutions often sell short the shares of secondary ahead of the actual offering in order to shed the risk of holding all those shares.
I've been watching Cardica for years. They have always been walking on the edge of the abyss as far as cash is concerned, but they have always been able to raise cash just before running out. With the FDA clearance for the microcutter, raising cash will be easier. If you look at latest 10-Q you'll see that they raised $14M at $1.05 per share last March, so apparently they need $14M per year to operate. With 51M shares outstanding, they could offer 14M shares to the public at about $1.10 and that should keep them in business for another year. During that time they can make a lot of progress and show a sales ramp up for the microcutter and PAS-Port.