Good because the dilution is tolerable, it was done at the market ($25 - $25.95 range) without warrants (bad things), only 3 – 4 million shares, and raising $75M to $100M.
Good because some kind of dilution was almost inevitable, the markets hate uncertainty, and this puts the main negative event investors were worried about behind us. It clears the decks for investors who were waiting on the sidelines for the “inevitable” secondary offering to happen. Now they can buy without looking over their shoulders.
Good because it improves SRPT’s negotiating position: Including some old in-the-money warrants expiring in December, and including the shares they sold with the ATM facility, and including this offering, SRPT should enter the new year with a cash position of ~$150 to $175M. This will put them in a strong negotiating position with potential partners (they no longer NEED a deal), and may even allow them to reach positive cash flow without doing any further equity offerings (!).
Good because the market says so. After hours, price went from negative to (decent volume) positive. Last AH sale was for $25.65.
We'll see what tomorrow brings, but I believe the "wurst" is behind us, i.e., SRPT = Chopped Liver no more!
It's not dilution, they are converting treasury stock to cash at a price between $25-$30 to institutional investors. The public float will increase, not the shares outstanding so no dilution. Dilution is when shares outstanding are increased.
that makes no sense; i checked the shelf registration; srpt is authorized to issue 50mm shrs; current o/s is 23.4mm or so; these new shrs will come from the shelf; of course, the o/s shares increase; these aren't invisible shrs, like the nekid shorts have, lol; they issue shrs, o/s count goes up
IT'S DILUTION IF IT'S PRICED BELOW MARKET PRICES; if at market prices, it's non-dilutive financing
I agree that it is bad because of the dilution and could possibly be good when compared to worse alternatives like giving away a major portion of the profits to get funding from a partner, or other scenario. I still don't like it because it is bad.
If they secure a good amount of funding and that propels things forward, it sure could be good. Like if they heard from the FDA they could get accelerated approval and therefore they need cash right now to fund manufacturing and marketing, then that would be very very good.