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Zalicus Inc. Message Board

  • investormdpart2 investormdpart2 Oct 4, 2013 10:08 AM Flag

    Fund Raise

    I know this won't be popular but I would like to see them announce positive Phase 2a results and then conduct a fund raising that brings in strong institutional holders for $7+ a share. I can't see them doing a round now as it's too close to data (unless they know they're sitting on positive results). We need to get the small funds out of this company and to replace them with stronger hands.

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    • I agree with rora. Not only would this be smart to do if P2 results are positive, it would be welcome, and you can be sure funds would buy in quickly. Doing a secondary offering after P2 if results are great would have no negative effect on the stock price. See SRPT, CLDX, and ACAD for recent examples of companies that did secondaries, which not only did not cause the stock price to drop, but in fact, raised it.

    • Why wouldn't that be popular? It's a no brainer. If Z160 is positive, we'll be at $15 per share easy, and yes, that is the time to raise funds for phase III. NO ONE would be upset about a little dilution when the prospects are so great. But the truth is, it might not even be necessary if Z160 is positive, because it will likely attract a partner.

      • 2 Replies to rora1494
      • If P2's are postive the only way Z sees 15 is with a great partnership agreement. They do not have the funds to advance to P3 on thier own.... jmo.

      • Exactly. That's what Acadia did before their run, it's what YM Biosciences did before they were bought. I like a lot of cash on the balance sheet because it enables a strong negotiating position. A potential partner (licensing or M&A) is going to show you much more respect if you have the cash to explore multiple options. This is actually a very strong management team so I'm not at all worried about their decisions. I was definitely in favor of this reverse split because it's impossible to attract quality funds when you're under $5.00. Bring on groups like Baker Brothers....get the quality into this company and the stock will perform remarkably upon positive results. This r/s was necessary and very expected. We're lucky we got the orphan drug run-up as it would have been more painful. That was the perfect time for this. I'm a longer term investor so I have no issue with what is happening and I've been in many good companies that have had to clean house before they could really prosper.

 
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