Wow, volume continue way above average, with another spike up during the afternoon. Wish I could figure out what's going on here. Is it just a function of the F-3? I'm as bewildered as other posters.
Please explain this shelf offering further. So CGEN makes $100 million in shares available to another company. Am I correct to assume that Martin can negotiate a price per share with that company? If he sells to that company at $10 per share for a $100 million deal does that mean that all of our shares also then go to $10? Someone with knowledge of deals such as this please explain, it seems likely that some company is going to get lots of CGEN shares and I want to understand the likely impact on current share holders.
Sentiment: Strong Buy
Thank you for your response. I disagree with the idea this is somehow tied to the company's need for cash. Brokers I am speaking to who have read this believe the company is preparing to sell shares as part of a major deal, remember there are only 36 million CGEN shares in total and any deal would require something like this shelf offering to create addtional shares as part of a deal. Still it all speculative, but after years of waiting I am certainly hoping this could mean that a deal is in our near future. All of us long-term owners realize that good news about the science is no longer enough to move the stock, it will only happen with a cash deal.
Sentiment: Strong Buy
CGENBeliever, We do not know whether they will use this filing or not. But let’s take a look at how MG used in the past. Let’s say we had a deal announcement and the stock shot up to $10. He might want to strengthen the balance sheet by selling 3 million shares into the market and receive $30 million. In the past MG has not done a structured sale but has just sold into the market using Cantor Fitzgerald. This was done three years ago when the Pfizer deal was announced and to a small degree last June when several 100 thousand shares were sold into the market.
You can also look at what was done at Evogene where Monsanto bought shares in the company as an investment. The price was higher than the selling price. How the amrket inprets that can be hard to tell but certainly if a company like Pfizer purchased part of us at a higher price the shares would tend to get close to that price. (by the way just my opinion but I don't think that will happen.)
One thing I am quite sure of if CGEN for whatever reason wants to raise money for expansion or to carry molecules through the IND process and clinical, MG will not be doing it for $5 a share, so no one should expect the heavy dilution that will bring.
Looks like we had some kind of rumor in the morning that apparently is not having follow through but again the day is far from over. Also I mentioned that I am following imgn and sgen as a guide to the technology, they are up about same % today in a down market.
We will get our announcement and we will double and much more over time just a bit more patience.
Elbit I saw your comment, your skepticism is justified but I don't think we should over analyze this lets see what happens.