Had the stock price appreciated the previous warrant holders would have exercised their warrants and the company would have raised capital that way. Unfortunately the first tranche of warrants expired worthless. Given the poor stock performance it's likely no additional warrants would have been exercised. Given the 5 year warrants on this raise I'm guessing the new investors want a long lead time. If all goes well from here on out PYMX may not need to do anymore raises. With roughly 25mil in warrants outstanding with 2 years left and an additional 25mil now PYMX may see an additional 50 mil in capital. I'm not happy about the dilution but I'm trying to see a possible positive. Still hoping for positive trials results.
At the last shareholder meeting they were clear about having enough resources to get through Phase IIs. This is terrible news and combined with the general lack of communication from the company at a time when resistant bacteria is in the news every day and IBM is in the news for a technological approach, it can't help but make one believe these guys cannot produce results or get their message across. A shockingly bad situation for existing shareholders. Why didn't they at least communicate the need and rationale for this move to those who have supported the company? This changes the game considerably, grossly diminishing support for the company. A slap in the face for existing shareholders.