The Put shares contemplated by the registration statement will be resold by Four M representing a 7mm share overhang of stock. I expect most of the buyers of the 25mm equity raise backstopped by Toucan, and most of the debt holders that converted debt to equity will also be sellers. The debt holders converted because the debt would never have been repaid, but as equity holders they can sell off their positions to retail investors and recoup at least some of their money. In the face of these likely sellers, upward price action will be extremely difficult for the next 18 months or so, and share issuance will be taking place at very low stock prices, which means much more dilution for us retail holders. Les Goldman's happy face notwithstanding , converted debt holders (including Cognate) are probably liquidating some or all of their positions as we speak. No reason to expect higher prices until the results of the trial are announced-- 18-24 months from now. Paradoxically, generally speaking, the later the results are announced, the better for shareholders. Hunker down. Sorry.
Considering the recent drop in price & weakness of volume, what they want to do makes no sense whatsoever, unless they are really counting on some kind of good news soon to pick things up before they issue more shares.
I think it could be likely that the coordination by insiders for balance sheet repair looks like a precurser of a reverse stock split or demand of negotiations with a future partner. I seriously doubt folks are converting now to dump unless it's specifically tax manuevering. It seems logical to register all shares of the stock prior to such actions.
Btw, has anyone spoken to investor relations to find out if the trial is going to meet it's promise of 25 centers soon?