The following is FACT not OPINION.
The recent dilution was a PRIVATE transaction to MULTIPLE INSTITUTIONAL INVESTORS. This is NOT a sale on the open market.
In many instances such as this, there is a stipulation in the agreement that does not allow the shares to be traded immediately. Many times there is a pre-determined date for which the shares can then be sold by the initial buyer on the open market. We do not know the specifics of this agreement, but it is probable there is a stipulation concerning this matter.
The warrants allow the possessor to purchase shares up to 4 years from now for $0.35. Again, many times there are stipulations in the agreement concerning the selling, trading and the exercising of the warrants. Sometimes they can be traded or sold, other times they are only valid for the original buyer. Sometimes there is an additional note concerning when the warrant would have to be exercised or become invalid if the pps hits a certain price. We do not yet know the specifics of this deal.
Friday at close there was a market cap of $37.8MM. Today, after more than 20MM shares have traded post-dilution, we have a market cap of $42.7MM. With that many shares trading and holding the price line it has, this shows the market is giving ONCS the acceptance of an INCREASE in market value, even though the pps is lower than Friday.
ONCS is set to release data at any point for Phase 1 melanoma and Phase 2 interim melanoma and MCC.
ONCS stands a very good chance of being granted orphan drug indication and accelerated approval for both MCC as well as melanoma. That would mean to the market before Phase 3.
AND, do not forget NeoPulse is still in talks for Partnership and is ready for market overseas immediately.
Sentiment: Strong Buy
If it was a sale on the open market, they could have gotten market prices and earn a lot more monmey. They wanted to get rid of the shares fast so they are selling them for a discount.
Please don't make up stories about stipulations. I will guarantee you and even wager whatever sum you can afford to lose, that these shares are as liquid as yours or mine. I guess the price will all depend on how many buyers there are on the other side. Why on this green Earth would you even want these stocks restricted? Get these weak sisters out of the way as far as I'm concerned and get on with business..
Who in their right mind would sign up for a locked in deal for a development stage biotech? Do you really want 48 million shares all locked up like wild horses in a pen? The stuff you read on MB defies logic.
Holy cow, you guys are insane. The CEO is paying himself $500,000 a year. What a gig, be a non-physician, come up with a gimmick product, get investors to bite on the voodoo, then go back to the fountain once you drain the funds. This CEO is a co-founder and not even a Dr. What a gig!