SPCEO1 wrote: Almost every aspect of this offering can best be described as a dumpster fire. And it was possible to do an offering well. It just didn't happen.
To do the offering well would have taken more foresight than has been demonstrated and less panic.
You would have needed to develop an attractive narrative about TH and sell it to both retail and institutional investors. The narrative would have been relatively easy to come up with (the story is a really good one - new experienced management, new IR effort, new patent protection opening the door to a huge new market (general NASH) and a very intriguing cancer option too) and at least the retail market would have eaten it up. But the company completely missed the burgeoning demand for good stories from retail investors and pursued only the institutional investors, with whom they really had little other than a potential share offering to curry favor with brokers, with the hope that would lead to the brokers working a bit harder to convince their institutional clients to buy TH. But as has been pointed out, reat stories are a dime a dozen for the institutional investor right now, so it is hard to get shelf space. TH failed to recognize the importance of the retail segment and changes in the institutional segment that meant it was going to be hard for them to make a lot of headway there. CYDY figured it out (and then went a bit crazy pursuing retail). Most of all, TH never developed an attractive narrative, backed by a great website and other investor marketing efforts, that could be successfuly pitched to any type of investor. It took quite a long time to improve the Corporate Presentation as well. All of these shortcomings meant the stock was priced too low and the never-ending low share price helped ti instead create a very negative narrative about TH, even when the real TH story was actually exceptionally positive. I mean, it was a somewhat of a crazy/bold gambit to take Grinspoon's small, government funded HIV NASH phase II trials and convert that into a general NASH phase III and get the FDA to endorse it. That is freaking amazing and the narrative that could have been built around that was one of bold, creative leadership creating huge shareholder value out of almost thin air and, therefore, management you could trust to do more of the same. This bubble market would have eaten that, or some version of that, up. The stock would have been in the double digits as the company highlighted the valaution gap between themselves and other NASH phase III stocks and the share offering we all knew was coming would have been gobbled up on very attractive terms and there would be additional buying in the aftermath of the deal.
Unfortunately, due to a lack of vision and an inability to understand the market they were selling into, we instead have a dumpster fire. The narrative is of a management team that is unable to communcicate with the market and, instead of fixing that first, believed their dumpster fire narrative and sold stock in an awful deal that only confirmed the dumpster fire narrative about them.
And the sad truth is, almost all of the decisions management had made, outside of creating an attractive, appealing narrative for investors about the company and its prospects, were really very good. It did not have to be this way, so it is a huge opportunity that has been lost. Management showed plenty of boldness and creativity, and also worked very hard on our behalf, to have the chance of creating a great narrative. They just failed totally on the investor communications part.
It is still fixable but we have not seen much indication that they have even indentified the problem yet.
Until some changes are made, we are left with a company that appears to be pretty well-managed in almost every respect, but where it may prove difficult for the stock to ever properly reflect their good work because of the major deficiencies in creating a marketable narrative and focusing on those investors who are most willing to listen. For legacy shareholders, we have to bear the burden of this failure due to the heavy dilution from the offering. Brace youurself for the proxy when it is published as the salaries,bonuses, options and other benefits are likely going to make you want to join the WallStreetBets Reddit group and start a populist rebellion. The "heads we win, tails you lose" mentality is hard to stomach. But the fact remains that management did work hard and produced some really amazing results on both NASH and cancer and the stock will inevitably reflect a decent portion of that even if the company never fully gets its act together on the shareholder marketing front. We just will not beneft to the extent we should have due to the unnecessary dilution.
scarlet1967 wrote: That is the problem some 6 million shares with attached warrants have been handed to traders( not investors), with the low daily volume it will take a long time before those trades(shares and warrants) get absorbed by the market and meanwhile the leadership seems to be happy not to making any meaningful efforts to market the company so at least a portion of those traders stay put.
jeffm34 wrote: Why screw over your long term investors if they are not actually getting anything from the new investors? They can't even get an accurate report done up from any of the companies who did the new financing. And it appears a good number of them were happy to unload the shares and just keep the warrants.
scarlet1967 wrote: They apparently wanted new shareholders as "too many of big shareholders are posters on this board".
So this was a lazy way to raise funds and get new investors.
I try move on from the deal but since people bringing it up how is that current royal long term investors are all of sudden a threat to the company?
They could find those investors by actively marketing the company!
May I ask why all the resentment against some knowledgeable posters which have been trying to help the company by coming up with great suggestions?
Didn't they think the new investors will eventually follow this board as this is the best place to get some insights about the company?