RE:RE:RE:RE:RE:RE:Theratechnologies Establishes New At-The-Market FacilityMy ownership of THTX has gone down over 30% since the beginning of the year, without selling a single share!! This has not been a good investment!
palinc2000 wrote: Cant find the Prospectus Supplement which was supposedly filed on Sedar but nevertheless I dont particularly like ATM financing in a low volume environment...There is also absolutely no obligation for the company to refrain from selling at or near or lower than the current SP.
Every rally could be met with increased Supply coming from the ATM thus putting a lid on the SP
We have no idea of the minimum limit price they are willing to accept and no idea of the timing they are looking for to raise the full 50 million$.
My experience with ATM is mixed....I have seen good results with large issuers but I dont recall any great outcome with small caps especially with biotechs.... We will only know some 45-60 days after each quarter how many ATM shares were sold and issued...... Unless they pull out a rabbit out of the hat I dont expect anyone here will be pleased with the selling price...
.Its obvious that the ATM is designed to remove the dark cloud of the stupid Convert way ahead of the due date ...... They could have diluted then at double digit SP but instead the same amount will need to be repaid with probably close to double the dilution.
Wino115 wrote:
We used to call these "dribble outs". It is ok for small amounts like this and means you don't need the money, but may opportunistically look to feed shares into a high demand spike or the brokers clients saying they will take some down at market. It's a potentially slower way to raise money if you need it and it is $ capped, not share amount capped.
The pros would be they finally did get a US firm interested and it should lead to research coming at some point. After all, Cantor only gets paid if those shares are sold. So there is an incentive to create demand via research. It shows they can raise money to either pay off convert and possibly show any NASH partner they aren't desperate for money in the deal alone, they want money and scientific/commercial partnership. Since the shares go out over time when there is either market demand or client demand it shouldn't hurt the share price. But it would mute any strong upside for a while until all those shares go out the door. It's a bit cheaper way to finance and it's at company discretion.
My bet is they want this in place for the fall and 4 quarter news flow and for getting Cantor in there to push the investment thesis as it develops. While they don't really need the money, they can just use it to retire the convert if it doesn't convert, if it does, they have extra to do accellerated approval for cancer and negotiate slightly better in NASH. But you need good news to make this work in a non dilutive fashion where it's issued at higher prices since you really don't need this money today. They may be willing to pull the trigger only at higher levels and after the cancer data. It's a fair question to ask them and needs clarification. But getting coverage needs the quid pro quo as PL said to us. I'm neutral on the money raise but hope it leads to coverage and a spike in interest. If this gets share over $7, I'm ok. But we need a bit of clarification.
1998novl wrote: Sensible strategy