All I know is that the balance sheet is weak and the lack of liquidity has foced the ZIO-101/301 programs to a virtual standstill. Perhaps this financial weakness is putting them in a tough negotiating position if they are trying to cut a deal based on the ASCo coverage. That said, ASCO was only 1 month ago so I have no short term expectations on that front.
To me, it looks like ZIOP is being walked down---the sale on the open this AM was not too subtle. That is a very common tactic if a VC knows a financing round is coming. It gets to aquire many more shares for the same amount of cash. Just think, 1MM shares (a week ago) would have cost a VC $1.75MM. Now, they could potentially get the position for $1.25MM in an "at market" financing round. Throw in a few warrants and selling 100K shares into the market just saved a potential financing participant $500K .
All just speculation but if a $$$$ round does come, I question why it was not done concurrent with the ASCO news and resulting price pop. Far less dilution @ $2.
Either way, we still need a partnering deal to provide help with PH III trials etc.
I think we will have our answer shortly. Based on the price action, a VC round would not shock me. A Pharma deal on the other hand would be fun especially is someone lightened position and or shorted in anticipation of participation in a deal that never materialzes.
Bottom line....my gut and brain say better than even money that we see a financing deal before the end of the month. If they drive this thing much lower, it will be very dilutive $$$ for us public shareholders.
I really hope that I am wrong and we get the upside surprise.
I don't know...isn't VC money really hard to get these days? If this is indeed occuring, you could almost look at it as a positive - the pipeline is so promising that ZIOP can still get VC support even in a horrible economy where no one else is giving ANY money to microcap biotechs.