RE:I've got a bridge to sell themMy earlier hopes were not right. This is just a bad deal in every respect as best I can tell at this point.
Just take a look at the deals AKRO, NGM and ETNB have done in the last little while and ask yourself why our company with similar or even better prospects and NASH positioning (at least in ETNB and AKRO's case - NGM is better positioned than THTX) could not do a deal like the ones those companies were able to pull off?
Now, we all new there was a financing in the company's future and I hoped the dilution would be more in the 10-15% range. So, this deal loads another 20% or so dilution on top of that. If you thought the stock had a chance to rise to $20 in the longer term before, now that price is around $16. Clearly, it is still a good situation but legacy shareholders are paying a hefty price for management's inability to position the company as well as other NASH company management teams have positioned their stocks. It just smacks of a desperate move to grab cash while it was easily avaialable. I thnk they wanted to do this since they first announced the general NASH news in September and they just could not let it go. If they were confident of the company's situation, they would not have needed to do a bad deal. I am confident about the company's situation but maybe they know something I don't that made them jump at a bad deal. While that could easily not be the case, but it is inescapable that such a thought will now linger over the stock for a while.
SABBOBCAT wrote: I hope that SPCEO is right about there being more to the story, because if not I am worried about what they will do with the cash... If a handful of B and C rated Canadian brokers can convince them to do this deal then I have a bridge to sell them. It is a super value add bridge and it only costs $40million lol