If you bought CMPX at $12.50, then you were in fact diluted. If you bought at $3 as I did, the private placement increased the book value and provided valuable cash for CMPX to increase future sales and in the process increasing profits per share. If management of a company goes to a bank for a loan, they are not required to ask the shareholders ahead of time. They have the responsibility to run the company as they believe to be best. If you don't like it, then you should not be in the stock market. Every company and its management operates in this way. I think the private placement is much better than borrowing from a bank. No interest to pay and only a slight dilution (8 to 9%). The big jump in short interest in the WSJ today is very interesting. CMPX has never had a significant short interest until now. The question remains : "Are those who are short or are the equity holders going to be right in the long run."
Thanks for the short interest reference. I guess equity short interest is not listed until the days to cover exceed 1.0. It is possible that the increase could have resulted from "insider" prior knowledge of the PP. With regard to the PP, I suspect that the buyers anticipate a significantly higher price for CMPX in the future. Otherwise, they would be buying equity that they would have an almost impossible task to unload if things don't go well. My grandfather always told me : sell the losers and let the winners run. CMPX is a good bet in this market of greatly overpriced equities.