No one responded to my question about whether Deerfield exercised $2.4 million in Warrants. But if they did,could it be that that was what drove the price down almost immediately after the pps spiked on positive feedback after the pre-NDA meeting? If so,that might go a long way toward explaining why Deefield made the Royalty deal. They may have figured that they'd made such a good deal that Titan's debt and financial situation was keeping the price down longer term than Deerfield expected thereby limiting the potential near term profitability from their $1.57 Warrants. By re-structuring the deal Deerfield loosens the noose on Titan's finances and enables potential buyers to focus on the long term potential of ProNeura and the prospects for more immediate increase in the pps. Some evidence of this thinking was the language in the original deal that required Titan to take the nesessary steps to be listed on either the Amex or Nasdaq exchanges once the pps reached a certain level. Anyone have any thoughts?
I doubt they did... we would have seen a 13 filing by the company.
In any case, I'm not sure why you are referencing a price drop in connection with any potential warrant exercise? When they exercise, they give the company cash, and get shares in return... why allocate $1.57 now? They could not sell the new shares in the open market for a profit since the price has been lower, and the volume tiny.
They will hold those warrants until either 1) a full sale is made (and do a cashless exchange/sale to the new buyer) or 2) They go to NASDAQ and achieve a much higher price than at these levels... then slowly sell them in the open market.