Hear what you're saying. A biotech that has a real product shouldn't see it's PPS drift down no matter, but..
Come on Cringe, now I know very well how you feel, and I hate this crew with a vengence, my emails to them have been so severe I am half expecting a call from the sherrif's, however, it's a weak arguement to say just because they a made a mess of 530 that automatically means 188 will fail too..like I said, all previous indications suggests that it's a winner and we can only hope and pray that it is..it's nothing to do with 'paper' it will either work or it won't..
I really don't think they have got word that EPIC is a bust...that is NOT IMO the reason for this raise, they are just hedging their bets iINCASE it is a bust and they then cannot find an investor after that to continue with AIR001 etc...let's not forget all the positve vibes we know and have heard about EPIC..ie, a ver carefully though out re-designed trial, no safety issues, and countless other un-biased reports and comments from experts in that field..
I'm still fairly optimistic on good results, my concern is due to what has just happened we may not even see a buck and then the dreaded R/S will be upon us...absolute nightmare!
If EPIC is good and say this goes to a buck, the sentiment will be that that is way too low a share price for a company looking to get a drug through the FDA. Reasons cited will be that they feel the copany is 'under the radar' at that price and will not attract any 'tutes, etc and of course there ae comfortably enough shares O/S to do it. The split will be say 5/1 so you then have a $5.00 stock....then we all know exactly what will happen to the PPS after that..
This is what will happen.
Seriously, I still cannot believe they have done this. Even by their low, crooked standards this is simply mind-blowing. 7 mil??
Me neither Quick, and I replied and told her that there are now way too many warrants and shares out there now for this to ever go anywhere even if EPIC is good. Also told he that Culley lied about having enough through EPIC. They are criminals.
Brendan, Biotech is a complex business and drug discovery is one of the most capital-intensive industries in the world; it typically costs hundreds of millions of dollars to develop a new therapy. As you know, the biotech markets in particular have been severely depressed and being in an election year only adds to that uncertainty (drug pricing in particular has become a major issue). At Mast, we do our best to minimize both risk and expense, but our objective is to bring a new therapy to the market, so many of our costs are unavoidable or simply prudent in light of the total mix of options available to us.
When assessing a financing, it is important to remember that we were only able to acquire our vepoloxamer and AIR001 programs because their prior owners did not adequately fund these promising assets. We do not intend to succumb to a similar fate. Many companies do not have the ability to raise money in a difficult market. We are planning for success and believe it is important to keep our programs running full-steam ahead. For this reason we made this offering to help ensure that our programs can advance apace, in particular by making key investments in regulatory, manufacturing and other commercial-readiness activities for vepoloxamer in sickle cell disease, as well as continued funding for clinical development of AIR001 and vepoloxamer in heart failure.
The difficult decision to raise capital at this time was based on these intended uses of the proceeds, as well as the desire to help satisfy the obligation under our debt agreement with Hercules Technology Growth Capital for additional funding by April 30th rather than prepay $10 million of the principal balance. We do not believe that it is in the best interests of our shareholders to be in a position where we do not have enough capital to move forward after hopefully successful EPIC results, towards the next steps required for our NDA preparations, manufacturing and commercial activities.
I think we need to start reading between the lines here with EPIC now. Bring this down 40% just for a lousy 8 mil?? Utter madness, the only explanation is that something has gone wrong.
I no longer do. You just can't defend this.
I need to do something or my family will be on the street. Dead money here now, but deep down I always knew that anyway. This stick has ruined me. No joke.