Theratechnologies Inc T.TH

Why did they do this horrible offering?

[SPCEO1]

WIth the selling after hours, it is hard not to add some paranoia to the stages of grief we ae dealign with already. So, does anyone have a decent theory about why an otherwise sensible group of people who clearly know better than to issue shares on such awful terms went ahead  and did so anyway? Here is my offerings on that but I must not be seeing something and I hope someone else will:

1.) The easist explanation is they have been wanting to do this for a while and thought the bubble was about to burst, potentially cutting off funding for a while. Given that share sales were going on hot and heavy last April at the height of the covid panic, however, that would seem to be a big overreaction to a possible scenario that may not materialize for a while.  

2.) When reading the prospectus, it is perfectly clear they are having an issue getting the EMA on board. They are still "assessing their strategy" regarding the EMA  according to the prospectus and since they have had so much time to interact with them already, that can only mean there is a high probability of the EMA not giving TH a thumbs up on the phase III. With questions still looming at the FDA, they knew that could call the whole NASH program into question in investors minds and wanted to raise money while everyone still thought all was well on the NASH phase III front. That would be quite a deception but the way things went down with the deal being announced just 2 days after the "good news" on the FDA letter, with no US brokers involved, and on horrible terms led by a second tier Canadian briker, it sure smells like that.

We had said that it was key for Paul and the company to get this phase III thing done or their credibility would be mud. Perhaps this is why they moved to raise money in this atrocious way since they knew their credibility would soon be in tatters?

[1998novl]

First of all there is very little after hours activity going on. Not sure why you are highlighting that? Secondly, and more importantly- why keep speculating about something that is impossible to know, and instead focus on what you do know. Like the next earnings call will be late February and that is a great time to have questions answered. As a large shareholder, surely you could convince an

[SPCEO1]

It traded almost 24,000 shares on a Friday night when it almost never has any trading after hours. Given the very odd situation that developed this week with the offering, I think we should all be paying close attention to what is going on. I know you are not wanting to see any further pressure on the share price but we can't just close our eyes to real things that are happening such as

[realitycheck4u]

This post has been removed in accordance with Community Policy

[scarlet1967]

I think the reason for me shifting between stages is I can't be in full acceptance until this company start conducting all aspects of their business in a professional and convincing manner, although disappointed I will accept if they fail the trials cause trials do fail but it looks like even they don't get the go from EMA they will go a head with the US phase 3 NASH(still huge financial

[Bucknelly21]

Let's be honest they just aren't that good at anything that has to do with marketing... you can have the best product in the world but if know one knows about it or you can't sell it what good is it actually...

[scarlet1967]

This is the part they are lagging compared with other companies in the same space.

[ggg088]

They should move the HQ to the US.

[Bucknelly21]

Unfortunately it appears to be the main problem for us and honestly I don't see them changing with as much as I want to 

[Wino115]

While that's a lot of after market, sometimes it seems it's just the print of a prior trade. I have never understood those after hour trades in an illiquid microcap. There usually seems to be gaps on either side of those after hour or premarket trades.  It's never continuous.  Guess we'll see, but I think it may be more white noise and hopefully I'm not whistling past

[juniper88]

Personally, I find it odd that the FDA give them a letter to go head with the phase 3 but negotiations still have to continue. So, perhaps the strategy is to buy some time to still negotiate with the EMA rather than FDA before starting the trial. As for after market selling I dont believe it means anything unless it's insider selling. Maybe we'll hear about lawsuit on Monday but the

[jeffm34]

If the Phase 3 trial does not get the go ahead they have opened themselves up to a major lawsuit from those that bought after the announcement. You would hope they'd be well aware of that but given their recent judgement who knows.  

[SPCEO1]

Read the prospectus, they told you that these risks are there, so they should not lose a lawsuit. Still, I don't think they lose the FDA backing for the phase III. Just the EMA looks sketchy.