They don't to raise money anytime soon. They are burning $15M and have over $60M in the bank.
They have enough money for the next four years. By then, they will have more than one approved and marketed product that generates high revenues.
The authorization is mainly technical. Let's say that they get an approval for RHB-105 and the stock price to $20. They can do a secondary at much higher levels without asking for an authorization to issue more shares.
You can take it to the bank,
My suggestion is based on the fact that RC kept buying shares in the $24.5 range and if the deal falls apart the share price might drop to under $20.
If they want to take a $5 drop on 2.4M Shares they should vote against. Since they no longer have a put protection, they are exposed just like the rest of us....
If Raging is going to vote FOR the deal, they will have to announce it prior to the meeting.
Otherwise, the vote may actually not get approved and they will tons of money..
They are not buying any more shares. Any shares bought after December 18th can't participate in the vote.
Raging decreased their Jan 25 Puts position from 9,000 to 2,000...
My guess is that they are working behind the scenes to increase the offer by 10% for them to vote for the deal.
Check their daily put trades,
You are wrong about the puts... Raging owned 9,000 of put 25/20 put spread that cost them 85c.
During this week, they've been selling the 25 puts. My guess they owned around 6,000 of those spreads and plan to liquidate the rest and go with the MLNX deal....
Now you have a 30 day of go shop period.... No one will buy this POS for more than MLNX is offering.
MLNX pulled an amazing move that puts Raging Capital in the penalty box.
If the shares close under $25 by next weeks expiration, Raging will have to roll their puts or sell their shares at $25.
And if no better offer surfaces, Raging will have to eat their hat,