I am still looking into this stock and company but, a few points:
1) It seems to me that good news for biotech/pharma research companies just doesn't last in terms of providing upward momentum throughout the day.
2) Short interest is probably in high 3s and 5s instead of in low 2s. Not much short covering.
3) I wouldn't buy the 1 mil per treatment calculation...
It doesn't seem to have a strong poison-pill effect for minority shareholders. If it was just giving extra shares to minority shareholders I'd be fine with that. This request requires some expectation of "good faith" that they won't dilute lower and run away with our $, and I think management wants to demonstrate that good faith by buying shares this week.
Thanks for letting us know.
I think that the S-3 was regarding the earlier financing agreement by Sabby. They converted a few million shares on October 31. They can't convert more than 15% though unless shareholders vote on it.
One thing I don't understand is why the shares were converted at .50 instead of .52 -- maybe they added in the expenses of the October financing?
The PRE-14A filing has several items... one request is to increase the October financing to the full 145 million shares.
Another request is to increase authorized shares to 290 million shares, as an anti-takeover provision. Those shares would go for sale public and not minority shareholders, so it seems to be more of a provision to make sure management isn't fired upon any takeover attempt, instead of a poison pill.
The vote will be in January.
Did anyone find any links about this event?
I found something about the "BOFAS Annual Scientific Meeting 2014", but I'm not sure that is it. Happened November 5-7, precious little info.
"So just to wrap up on the clinical side, we’re continuing to evaluate other indications for further study in putting it into our evaluation process. One important thing to note is as I mentioned on the last call, Ramon Cugat an orthopaedic surgeon that treats many well-known European premier league soccer players just completed 20 patient study of the use of Cytori Cell Therapy for anterior cruciate ligament reconstruction in Spain. That enrollment has been completed and expect data to be presented the first tranche of that data at the European Asian Workshop on Ligament and Tendon repair in soccer players this month. And we'll let shareholders know when that data is available and it’s ready for review."
With pharma research/biotech stocks, it could go to 20, or 0. Good pipeline but lots of cash burn that will last maybe 3-5 quarters at current rate and without new revenues.
If they get it significantly over 50s they can return the convertible shares, preventing significant dilution.
I suppose I should be happy for you... guess you get off on taunting other people, and not just showing how much money you make. To each his own.
In my opinion, they are buying stock because they don't want the share price to fail like it has been prior to today. New share offerings are the lifeblood of pharmaceutical research companies that aren't yet making enough revenue to pay the bills.