RE:RE:RE:RE:RE:This is exactly like other pharma offeringsI admit that being heavily oversubscribed is a low probability possibility. But what if Dr. Frost who subscribed in the last PP with 5 year warrants wants to maintain his ownership percentage or even increase it by participating in the current one either directly or thru OPKO Health ? As far as I know Dr. Frost has not sold his shares in Theralase ?
Quattro74 wrote: Ah Ok Bay, I see, in that case, where there is way more interest than the bucket shops can accomodate, all monies $$ sent back would then be poured back into TLT shares at market. They would probably be chaseing as an over-subscribed, early-closing offering would be very bullish. ;-)
baystock1 wrote: Yes but that doesn't change anything in the point I am making.
Suppose a hypothetical investor would like to invest $100k into PP and so sells $100K worth of Theralase shares and sends this amount to Mackie. But then Mackie finds out that a total of $45 million has been sent in by investors interested in subscribing to PP. But they can only accomodate $15 million max, so they allow this hypothetical investor to invest $33K into the PP and return $66K to the investor. What does this investor do with the $66K in returned funds, does he attempt to buy Theralase shares on the open market ?
Quattro74 wrote: ok I haven't read that prospectus offering NR for a while, I thought any over subscription was limited to 10-15 % ??
baystock1 wrote: What if the offering is oversubscribed by a factor of 2 or 3 times ? Some PP participants who sold their existing holdings or sold short may need to scramble to buy/cover. Considering what a steal the PP pricing is, it is a possibility. All you need is one hedge fund to get what Theralase is about and ask to fill the whole $15 million themselves.
cobblehill wrote: Mackie has a stable of past pharma offerings, some where there were 5 yr warrants and 40% sp drops afterwards
I found those listed on their website when the offering first posted. Because of that knowledge, I was better prepared for this outcome.
If the warrant is worth .02 to you, sell your shares and buy the offering. Seriously, what's the hard part? That's why the price is in the toilet, current investors are doing the smart thing.
This offering probably closes by the 8th,oversubscribed. This is a gift in my opinion.