RE:RE:RE:RE:Dumping 20M shares and keeping 10M warrants @$3.18I have so far resisted saying what you have said, but since you brought it up, I agree that we long term shareholders do appear to be the only ones who believe strongly in TH's value/future. Analysts, and we had precious few to begin with, have effectively abandoned the stock (no report from Canaccord or Mackie - how is that even possible?) and management confirmed what they really think about the value of t he NASH and cancer opportuniites by selling stock at a price which effectively values them at zero or even less than zero depending on how you calculate the value of the legacy business. It is pretty disgusting.
So, are we the idiots? I don't think so. We have had some very sophisticated medical analysis on here by some great posters, We endlessly questioned the NASH situation and worried that we might get shot down by the FDA on the very unusal attempt the company was making to get to phase III in general NASH. Yet, the FDA has agreed to it, which is a gigantic development. Given the size of the NASH market and the pretty high liklihood that Egrifta will prove to be a helpful and safe drug for NASH, we are hardly crazy in thinking the stock should be valued much higher than it currently is. Why will analysts not acknowledge that?? I have no idea as it is staring us all in the face. There may be some question about what alterations the FDA is going to ask for, but it seems unlikely they will back away from letting their trial be a phase III trial after having already agreeing to that. There is not going to be any new data the FDA would look at that would cause them to change their mind. The EMA will likely not join up with the FDA but that should no prevent the company from going forward given the prospective size/profitability of just the US NASH market. So, I don't think we long term shareholders are idiots for seeing what is frankly visible to anyone willing to look at it. I might also add that the cancer opportunity looks very good as well and I am willing to bet the institutional buyers of the deal participated mostly because of cancer rather than NASH.
TH leadership saw $40 million sitting on the table in front of them with horrible terms attached to it and did not have the character to walk away from that horrible deal. They valued that $40 million more than they valued us. The opportunity for NASH and cnacer are unaltered by the financing, and actually even enhanced by it, but when every other company is doing much better offerings and when many of them have less to offer than TH did in terms of future prospects, it was simply a major, major failure by TH's leadership to do that particular deal with such deadly terms that sucked the confidence out of anyone thinking about investing in the company and certainly from the shareholders who supported the company for years.
Has anyone heard a decent defense of this financing from anyone? Analysts? Management? There is no defense as it is indefensible, at least based on what we know at the moment.
About the only thing I can think of that would maybe make it somewhat defensible is if the company was in partnership negotiations with big pharma on either NASH or cancer or both and wanted to have more negotiating leverage by having a stronger balance sheet. In other words, they wanted to be able to say to the potential partners, we don't really need you so if you want to partner, you are going to have to blow us away with a huge offer.
Anyone else have any ideas of what our normally sensible TH leaders might have been thinking when they agreed to what is a worst case scenario of an offering?
ANALIAS00 wrote: So if I understand the facts correctly: - No analyst are interested to provide serious and full detail report on THTX - No analyst see THTX's future as bright as we would like to - The buyers already sold their shares so we can only come to conclusion they do not believe in THTX's furure - Because of this horrible deal we must understand that nobody believe in THTX's future including THTX themself. - Even before the horrible deal THTX's market cap was clearly behind all other similar biotech that only prove that no investers believes in THTX's future So we, old sharolders, are the only one that believed in THTX. We would be right and the world would be wrong ? I passed from a believer to very sceptical. I dont believe no more, I can only hope as many said before. I bought again recently at few occasions form 2.53 (can) to 3.00. I was happy when SP reached 4.16. I dont feel like going back to read that PR. Wondering if it started by "THERATECHNOLIGIES are please to announce...". I wonder if highfives were VIRTUALLY shared at THERATECNOLOGIES after this deal was signed. Facts and market telling us that no one wants to speculate on THTX. Even THTX seems having problem to believe in themself. I trusted THTX management. Sorry guys but I only find confort thinking that the few experts that you are were wrong to. :o)
palinc2000 wrote: Comments:
1-The number of shares issued is 16 million not 19 million
2-Apparently there are about 10 million Units in the hands of 3 presumed to be long term holders
3- That would leave about 6 million shares in the hands of retail /short term holders of which approximaty 2.5-3.0 have sold already and kept the Warrants as you explained
4- Thus there are still some 3 million shares held by the original acquirer and I also think most of them will get rid of the shares in any subsequent spikes in the SP
5-Yes it is an atrocious deal for legacy shareholders