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Discovery Laboratories Inc. Message Board

  • dutchboyprint dutchboyprint Dec 14, 2011 5:32 PM Flag

    Okay, the dilution is starting...

    DSCO released an 8K after hours today - Lazard to sell $15 million in stock "at the market".

    I make that a little under 9 million shares at current prices......

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    • we went from bad to worse

    • Just started shorting again.

    • If DSCO wants to sell only. If they partner up they will not need one cent.

    • haha...Very funny dutchboy, anybody with a scintilla of the grey matter can plainly see.....if they read the 8-K in it's entitirety, and do NOT take just a few words to put their own spin on it, it should without much difficulty be able to see that you are trying to quickly knock the stock down so you can finally enter.

      And don't try and come up with this crap that nobody on a message board can affect the price of the stock, if a stock is very thinly traded it is not that difficult to rattle some naive holders into selling.

      Anybody that reads dutchboy's, and his nincompoop admirer lohi......before you take their phoney take on this the 8-K for yourself.

      • 1 Reply to bluecheaps4mee
      • I am sorry, but I fail to see how what I posted is bad.

        DSCO has entered into an agreement with Lazard with the intended purpose of selling new stock into the market. That is dilution... period.

        Those shares may be sold immediately... dribbled out over time... sold occasionally in chunks.... But the result is... the new shares are sold into the market - competing with current shareholders.

        There is now a "Big Seller" poised to sell into any price pop that occurs. In the absence of a price pop, the company may just lower the price until the shares will move.

        Now, rather than just spewing venom, why don't you explain to me where I am wrong?????

    • Just read the 8-K ... here is my take:

      Disregard the 2-year statement ... the key to me, is that Lazard gets 3% off the top ... so, they will have incentive to try to sell as much as possible, as soon as possible.

      Such dilutive news usually drives any stock down fast ... but, nothing was "priced" wrt this offering ... "at market," is a nice way of trying to hide what it is ... Dilution, and potentially massive!

      At the 52-week LOW, it correlates to ~9.55M shares ... so, 39% additional dilution!

      At $0.10/share "below" the current 52-week LOW, it correlates to ~10.2M shares, and 42% dilution.

      The problem with what DSCO has just done, is that there is NO floor!!!

      If Lazard can't generate customers at the current PPS level, they, along with their Partners, can drive the stock down, to entice customers to buy-in at the new level ... problem is, that results in less Cash to DSCO, and significantly more Dilution to it's shareholders (I won't include Amick and his Croonies here, since they've never purchased shares on the Open Market).

      Bad decision by DSCO to go this route ... it could work out, but I don't see that happening.

      I can now see this thing trading at 80% of it's current 52-week LOW, to the $1.26/share, in the not too distant future.

      • 1 Reply to loihisteve
      • Our buddy lohisteve says....."Just read the 8-K ... here is my take:

        Disregard the 2-year statement ... the key to me, is that Lazard gets 3% off the top ... so, they will have incentive to try to sell as much as possible, as soon as possible."

        Haha...yeah just "Disregard" what is actually said in the 8-K.....and ONLY regard what our old buddy lohi has to say.

        Thanks for the financial advice old buddy lohi, it's worth exactly what we paid you for it.

    • the pps will not survive it will crumple, look out below dollar will be most likely the new norm, this crooks are ready to have another r/s in two years again and they will dilute every share of this company asking for more in the next meeting. what amazes me is that in this country they will put someone in jail for jay walking but protect crooks who steal billions of dollars from the public, well shame on you as a government and as a system.

    • Their customers will be buying for the Warrants, so if the same thing happens this time, as the past few, expect a 15%-20% drop in the PPS.

      • 2 Replies to loihisteve
      • This ones gonna be hot.

      • There are no warrants this time. It is not a placement agreement for a certain number of shares. It is more like a CEFF.

        DSCO calls up Lazard and says" We authorize you to sell into the normal market up to X number of shares at a limit of Y dollars each." For this Lazard gets to keep 3% of the proceeds.

        It is no different that you calling your broker and telling him to sell a certain number of your shares for at least Y dollars each. The difference is these are newly minted shares. You will not even know when the shares are being dumped into the market as no reporting... even after the fact... is required. You will just notice that the next 10Q will show more shares outstanding... no reporting requirement other than quarterly....


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