Much as I wish NSPH waited until after a catalyst to raise this cash, the offering will establish a firm floor on the price, bring in new cash and extend its runway.
It has about $1.10 in cash per share right now. The offering will only increase that amount and by a lot, so don't get freaked out by their posts.
In fact, if it prices near $3 it will be bad for the shorts unless the are party to the offering (which I would think would have some serious legal issues) to lock in profits. I could see the stock moving north in the near term if so.
Harris and Harris did the same thing. although it has hurt the share price for an extended period of time, they were able to tap the public markets for additional liquidity while the markets were constructive toward risk. I'm sure management's thinking here is that if they need to raise the money eventually, why not now when the window is open?
Secondary offerings for companies like NSPH usually come at a minimum of a 25% discount, so it will probably be around $2.25. TECH, this is just another example of "the street" knowing with certainty that a secondary was coming. Shorting this stock with this advanced knowledge was a no risk money in the bank trade. It's another example of trading on insider knowledge that will go undetected.