2011 canceled financingI finally found something on the February 2011 canceled financing. It went as far as publishing a press release announcing a preliminary prospectus with names of all the firms involved, with many US firms. My recollection is that the initial price per share was supposed to be around 6$, finally the buyers wanted it to be lowered at around 4$ per share, the company did not accept that new price and the deal never materialized. As said in the press release, it was for 11 millions new shares.
Two years after that, in March 2013, the stock price was down at 0.30$ and during that year, Thera was on the verge of bankruptcy with close to no money left, they were saved by 1 or 2M$ of tax credit reimbursment by the government. One of the item the money was supposed to be spent on was to complete its new formulation of Egrifta, and also continue the development of novel GRF peptides. Anyone here remembering TH1173? Imagine having a new smaller GRF peptide as efficacious as tesamorelin, but with a brand new patent on the molecule itself.
All that was dropped or postponed for many years. So when I am talking about the last financing as being an insurance policy, this is what I am talking about. In 2011, they passed on 40 M$ and it nearly killed them afterwards. Remember, at that time tesamorelin was just approved and nobody knew it would sell so poorly. They passed on that opportunity, and did not have another one for many years after that and were forced to do it at a much lower price per share.
So passing on it then was an awful decision, even though 11 millions new shares would have been a huge dilution at the time because the number of shares outstanding then was probably in the 50-60 M range. I said many time here that Thera was a relatively old company with an history. This is an important page in its history book. There are still people on the BOD, like Paul Pommier, that were there in 2011, maybe it played a role in not repeating the same mistake. Corporate memory is a good thing, one of the advantages of not being brand new.
On February 22, 2011, Theratechnologies Inc. (TSX: TH) announced that it had filed a preliminary short form base PREP prospectus in connection with a proposed cross-border offering of approximately 11 million common shares, with an over-allotment option of 15%. This offering will be Theratechnologies' initial public offering in the United States. The offering was made through a syndicate of underwriters comprised of Jefferies & Company, Inc., Stifel, Nicolaus & Company, Inc., RBC Capital Markets, LLC, BMO Capital Markets Corporation, Desjardins Securities International Inc. and NBF Securities (USA) Corp. Theratechnologies' common shares are being offered in Canada by Stifel Nicolaus Canada Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Desjardins Securities Inc. and National Bank Financial Inc. Theratechnologies plans to use the net proceeds from the offering to advance its clinical program relating to muscle wasting in chronic obstructive pulmonary disease (COPD), to complete its new formulation of EGRIFTA™ and tesamorelin, to continue research and development of novel GRF peptides, for potential acquisitions, and for working capital and other general corporate purposes. Theratechnologies was advised by a team from Fasken Martineau comprised of Robert Girard, Frdric Boucher, Caitlin Rose, Monica Dingle and Jimmy Triassi (corporate and securities) and Serge Gloutnay (tax).
https://www.fasken.com/ko/solution/clientwork/2011/02/theratechnologies-files-preliminary-prospectus-for-us-ipo-and-further-canadian-issuance/