RE:RE:RE:RE:RE:RE:RE:RE:Keeping all options open-Yes, just get listed on the Nasdaq without an offering.
Another one of my stocks (VLE) is going to list without an offering in London.
Go where the invetsors are. Go where the money is.
Promotion from brokerages would be nice but if Trogarzo and F4 pan out how we hope, we’ll eventually achieve a greater valuation on the Nasdaq than the TSX alone. NASH or positive cancer data could seriously juice the price.
A future offering could be used for an acquisition.
I’m in no rush for a takeover. Let this company keep growing through acquisition and earnings.
I was concerned about the direction of the company a week ago but I believe we are in good hands and they have a solid plan.
bfw
Wino115 wrote: There's nothing worse than an offering of new shares when a company has cash and can't really answer the "use of proceeds" convincingly. We shouldn't want that either as it just means dilution. If there is money needed for a Phase 3 or to access Taimed's broader compound in the future, then you could look for an underwriting of new shares. But otherwise, my sense was that they just wanted to list (not raise capital) in order to access a larger dedicated biotech universe of investors in the US who value specialty pharmas higher than on the TSX - as Sabbocat indicates. It's not ideal for coverage, but you may pick up some of the smaller brokers they've done road shows with like Cantor Fitz and Piper Jaffrey. You won't get JPMorgan or Goldman, but they don't really need them.
I still think any takeover would have a very low probability attached to it at this point. It's a not just a specialty pharma, it's a specialty specialty pharma addressing small markets at this point that aren't growing but actually shrinking in the long-term. Perhaps that could change with fatty liver success, but that's it for now. Further, if you assume their forecasts of $1.50-$2.00 in peak earnings a few years from now plus throw something in for NASH, why would you sell for anything less than a fair value of that? Put whatever multiple you want on it, but shouldn't it be at least $30, not $17? I just don't see a takeover happening without more successes notched on their bedframe.