A lot of us bought in at a dollar or so and the returns have been wonderful indeed. However, the recent SA article put some perspective on the warrant price vote coming up on Feb 21. If that warrant price goes through to 1.01, all of our progress will be wiped out in 2 sessions. How do we play this, fellas?
Not so sure that it gets approved. Why would any existing shareholder, indiviual or institutional, possibly vote to decrease the value of their holdings. It is a formality that must be performed under the original warrant issuance, but I don't think it will be approved. Gil has no option except to support it as he does not want to alienate the original puchasers of common at 2.07, but my guess he has his fingers crossed that it gets rejected.
"If that warrant price goes through to 1.01, all of our progress will be wiped out in 2 sessions."
If the proposal to amend the warrant price is approved then chances are they will be exercised which will dilute our shares by approx 8% and increase our cash position by approx $5m. That's it.
People need to relax. Just because the warrants maybe priced at $1.01 doesn't mean we will trade back there. Management are just trying to please to folk that bought the offering last March at $2.07. The fact that the latest large offering had no warrants tied to it was a major positive although the pricing certainly sucked. :)
We are getting to a pivotal stage of development in Athersys that has taken years to arrive at. Don't let this small issue sidetrack you.
This is a good post. I've never been long a micro biotech while this kind of issue was going on. We do have a good bit of time before this issue comes up. I may very well reverse my plan of attack once I have more time to see what's happened to similar stocks in the past.
I agree that we'll see that warrant change go through. I'm just gauging when the common investor needs to get out of the position. It seems like with these microcap biotechs that low numbers in the wrong places will massively decrease the PPS. I'm thinking I wanna sell if it hits 1.50 in the next few weeks, jump 85% of my position, and get back in higher 2-3 sessions after the warrant price takes its toll.