RE:RE:RE:Best Option? I tend to agree with you Sabbo -- it's likely not one institution and there is probably some chunk for retail. That is also a very high commision but in line with small cap volatile unknows. But I do think this shows something we've know -- that there is not an extensive and deep knowledge of capital markets and bankers between Dubuc and Levesque, or the Board for that matter. There's a rookie element to this, but guess we'll see.
One thing we haven't thought about is perhaps there's a connection with the two new Board members that came on. Maybe there's a Molson Family or Molson affiliated angle to it and that's also why they just stuck with Canadian brokers to get it done fast. Pure speculation.
SABBOBCAT wrote: Rusty, that's not how bought deals work in Canada. At least 50% of this will go to weak rental hands if not more. There wouldn't be a 6.25% selling commission if it were oversubscribed on the institutional side of things. All round just bad.
SPCEO1 wrote: Paul actually made that comment on one of the broker calls in the Fall and it gave me confidence that they would not do a deal that was foolish since they apparently had a number of good options. Right now, based on what is public, this deal seems to indicate they had very few options and had to grasp the money they could before the stock market bubble burst.
I am hoping the opposite is actually true but we only have hope until more details, if there are any, are released.
I hope that we have a super impressive, medically savvy, historically very successful long term investor that took a 20% stake in the company via this deal. There is a investment fund called the Baker Brothers that fit that description but I am sure there are others as well. If such a firm did a lot of due diligence as our CEO has already said some have done on the cancer program (see JFM1330's reminder of that) and negotiated a this sweetheart deal to take a big stake in TH, then there will be considerable positives flowing from that. One is a lot of copycat investors buying THTX's stock in the open market because they want to do whatever the Baker Brothers are doing. Second, the Baker Brothers would tell the analysts to pick up coverage of THTX and they would do so in a heartbeat because the Baker Brothers are such a big client. So, a firm like the Baker Brothers no doubt approaches a firm like TH with that value proposition and firms like TH see the logic and go for it. Which is why firms like the Baker Brothers are so successful.
But with no new info along these lines so far, all we have at the moment is a highly dilutive deal, done at a bad time with no new analysts brought on board and therefore it destroys the credibility the company had. I suspect we will see the exact opposite of this once we get all the details but for now, I can see what the market is looking at it that way.
longterm56 wrote:
One of the reports from SPCEO talking to the CEO awhile back said that Paul said "we have alot of options for raising cash. " So we have to choose one of the following: 1) they didn't choose the best option and therefore made a bad decision. 2) they were compelled to make this deal to move forward 3) this was the best option Since #2 is really the same as #3 there are really only two choices. I have to go with #3 realizing that I don't know all the details.