That $60 a share price is worth about $38 with this stock dilution.
Buyout off table, big drug companies don't want to cure cancer,they make too much money treating it,secondary offer lost investors 5 million in one day and 26 million gives Woods spending money for another year.This will trade between $2.65- $3.65 until new trials or maybe partner like Kissei puts up 400 million.As far as a partner,Woods would have never given $4 warrants if it was in the works.One thing that's for sure is Woods put on a great show,everyone bought the buyout with the we cured two people with cancer so everyone wants to buy us,we hired Oppenhiemer to make the best deal and we are not going to do new trials so no need for staff and no dilution of stock.Woods speak with forked tongue.
If a buyout plan is on the wall,every shareholder prior to this dillution would file a class action suit.
Bill,the money raised is not enough to run trials,therefor it is for more time to negotiate to get a partner or for a buyout.If Woods truely believed in this drug and the chance for a buyout or partner why would he include warrants at the same $4 price? Shareholders cannot get in on this deal,they only could buy it on the open market without the warrants.Shareholders holding this before the offering should have gotten the same opportunity to buy shares with the warrants at $4 also,or at least gotten warrants for $4 for thier shares.Loosing 30% of your stock value is bad enough,they should have thrown shareholders warrants esp. after Woods said he would not dilute stock,leaving him open to lawsuits by current holders.If a buyout or partner happens this offering short changed the over 20 million shareholder,esp.those who paid over $4 a share.Offering seems very shady.
Why did they issue the warrants at $4 also?,my take is if there was a buyout the warrant price would have been much higher,which means the pps will stay at $4 or less for a long time.The drug is a blockbuster but too many game being played behind the scene,only Woods knows the truth.
Woods should of held a press release this morning saying the secondary offer is just in case the negotiations take longer than expected or a backup plan if they don't get the offer amount they want. Price and size of the offering up in the air,so just all talk now,maybe Wood's giving them a chance to buy cheap shares.
Woods should explain why he said no dillution or new trials,let staff go and now this new offering,leaving himself open to lawsuit.
I think Woody is looking for a partner rather than a buyout,that is why the contract is taking longer than expected,alot of fine print.If the drug works,why short change yourself by selling when you can make millions more in the long run?
Deal will be sealed with a kissie.
Scam,the stock traded over 28 million shares in one day,held $5 pps,has blokbuster drug with no side effects and Oppenheimer would never contract on a scam,how many shares are you short?
Looking at the way it's trading this news was another pump & dump move,the stock price reacted the same way the last five positive stories,up at open,then even or loss at the close,they took over for Rodney Dangerfield,they get no respect.
Melo releases news day before earnings,was it to unload shares because earnings will be bad or are they buying knowing earnings are good using biogen news as the reason to avoid insider trading on info.,guess we will find out after earnings.If earning are good shorts stuck with their pants down,pps will be $1 by Fri.
With the stock pps at this level,one of thier partners will buyout the company it's the only way to stop Melo from taking all the cream, leaving shareholders with only sour milk.
Hercules stated assets 50-100 mill.,liabilities 100-500 mill.,loosing over 10 mill. month,plus severence pay for all employees,centerage lawsuit,how much money will be left in 6 months?