We'll find out soon who bought the $100 million dollars worth of stock from SRPT. For those that can read it's not dilution. The company is increasing the float not increasing it's shares. The $100 million cash is now on the books so you have a net effect of zero. Except we now have a big shareholder that may want a bigger position down the road. The stock should trade back up to $30 very soon.
The PR clearly states a "public offering", # of shares undisclosed, but the writers are estimating $100M or approximately 4M shares. Not much dilution and tons of $$ in the bank!
Sarepta Therapeutics (SRPT), which is developing a drug to treat Duchenne muscular dystrophy, announced a surprise equity offering after the close of trading today. The company didn’t specify the size, but talk is that Sarepta is seeking about $100 million, or 4 million shares. The stock closed today at $25.44, down 1.9%.
Where did you see that? That it was a sale of existing shares and not dilutive. I didn't see that in any of the press releases, so while I pray it is true, it sounds more like wishful thinking on my part.
do not read too much into any of this dilution talk
but the loose concept is that if I add $100 mil to my free cash and I price the stock I sold to raise it at market, then yes, there is share count dilution, but no, there is essentially no value dilution
this argument is beautiful
until of course
you spend the money
then it is an ugly duckling
until the market thinks you spent the money that increases the business value of the company