RE:Resverlogix Announces Warrant Exercise Incentive ProgramOdd. I like it, and I don't like it.
We get cash for the short term. Dilution? Yes. But, its dilution that already existed under the current capital structure...i.e. warrants that would have been execised on any take-over. It removes the over hang of $100 - 150 million dollar financing. Unless they are confident that post CTAD results will result in a higher secondary offering issue price. Does it signal an outright sale? i.e. we get the oxygen to take us through a negotiation (auction) period with multiple suitors? Or, it gets us to a point where the FDA gives us a breakthrough therapy drug designation....that would be a huge game changer (60 to 90 days I think)
In some ways, it just makes things a little more uncertain/cloudy....what's he playin' at?