A shelf offering is a registration of a security that a company intends to issue, but it "sits on the shelf" over a period of time up to two years. It may or may not end up actually being offered for sale.
A mixed shelf means that more than one type of security is being sold. It could be to sell common stock, preferred stock, and bonds. etc.
Almost every biotech has a shelf offering. It's just in case they need more $ to further their product. It doesn't mean it will get used. Thanks for the cheap shares.
Sentiment: Strong Buy
I can't believe people don't see this as positive news?? First of all, no way in hell do they do a secondary at these levels. They're trading a BOOK VALUE right now. The last investors that paid 30 million, bought it at $5.50. So, no way in hell do they do anything at these levels. To me, it seems like the stock will head up north BIG TIME.
The reason they want to have these shares on the shelf is simple. Once the price appreciates over $10, they can raise capital at $7.50, as someone else already pointed it out. They have 30 million in liquid cash and they can fund their operations for the next two years. I mean, they only have 9 million shares outstanding. That's nothing. Once they report good news though, watch out. Stock will appreciate 200% or so but they will use the offering. Why? How do you make a business grow? By spending. They need a bigger sales force if they want to get into other markets such as Europe and Aussie. Don't you see that only 9k shares were dumped after hours. Who do you think sold? Dumb people that don't know how to invest. That's who. No one else sold. I think we're setting up for a big bounce north.
I agree with those who say that the shelf registration probably will be used. Why else would they file it? However, they may use it to make an acquisition, or they may directly solicit offers for those shares (that is stated in the F-3). To make one point: the company is authorized to have a max of 20 million ordinary shares outstanding. There are roughly 10 million shares outstanding right now. If ROSG wants to make full use of the proposed aggregate offering amount, each 'unit' would have to be sold for ~ $7.5.
Believe me, it will get used. In fact, that might just use it as soon as they can. This company needs cash and lots of it to further market what they have. They may be burning through that last offering which took the pps from 10 to 3$ in a week.