RE:RE:RE:RE:RE:RE:RE:RE:Theratechnologies Establishes New At-The-Market FacilityIf cancer turns out to be a winner the probability TH has to write a big check in June 2023 drops dramatically. If they also sign a worthwhile partnership deal on NASH, it drops even further. There are a couple of big "ifs" there but my best guess is they never have to write that check. A lot depends on the cancer results.
palinc2000 wrote: The proof will be in the pudding!!!
They need to repay the Convert which is beginning to haunt them and Paul has mentioned the Convert a couple of times in the last few months.....The CEO who did the Convert is no more there but the CFO is still there
As Wino mentioned the ATM is dollar capped but is open ended with regards to the number of shares...
SPCEO1 wrote: While TH does not deserve us respecting them to handle this in a good way, I have to believe they will. If their prospects are as good as we think they might be in cancer, they will be raising new money at some point to pursue larger phase II trials. So, assuming they are clever, this allows them to raise money at a high price, hopefully high enough so the average price of the OO and this share sale is a bit more palatable. Now some may not be willing to believe they can be clever, which is understandable. So this gives them a chance to help rebuild their reputation - let's hope they take full advantage of that opportunity. Since the need for new money is not readily apparent, there should be no reason to panic like they did last time. They can pick an optimal time and implement this - let's hope they do.
palinc2000 wrote: Cant find the Prospectus Supplement which was supposedly filed on Sedar but nevertheless I dont particularly like ATM financing in a low volume environment...There is also absolutely no obligation for the company to refrain from selling at or near or lower than the current SP.
Every rally could be met with increased Supply coming from the ATM thus putting a lid on the SP
We have no idea of the minimum limit price they are willing to accept and no idea of the timing they are looking for to raise the full 50 million$.
My experience with ATM is mixed....I have seen good results with large issuers but I dont recall any great outcome with small caps especially with biotechs.... We will only know some 45-60 days after each quarter how many ATM shares were sold and issued...... Unless they pull out a rabbit out of the hat I dont expect anyone here will be pleased with the selling price...
.Its obvious that the ATM is designed to remove the dark cloud of the stupid Convert way ahead of the due date ...... They could have diluted then at double digit SP but instead the same amount will need to be repaid with probably close to double the dilution.
Wino115 wrote:
We used to call these "dribble outs". It is ok for small amounts like this and means you don't need the money, but may opportunistically look to feed shares into a high demand spike or the brokers clients saying they will take some down at market. It's a potentially slower way to raise money if you need it and it is $ capped, not share amount capped.
The pros would be they finally did get a US firm interested and it should lead to research coming at some point. After all, Cantor only gets paid if those shares are sold. So there is an incentive to create demand via research. It shows they can raise money to either pay off convert and possibly show any NASH partner they aren't desperate for money in the deal alone, they want money and scientific/commercial partnership. Since the shares go out over time when there is either market demand or client demand it shouldn't hurt the share price. But it would mute any strong upside for a while until all those shares go out the door. It's a bit cheaper way to finance and it's at company discretion.
My bet is they want this in place for the fall and 4 quarter news flow and for getting Cantor in there to push the investment thesis as it develops. While they don't really need the money, they can just use it to retire the convert if it doesn't convert, if it does, they have extra to do accellerated approval for cancer and negotiate slightly better in NASH. But you need good news to make this work in a non dilutive fashion where it's issued at higher prices since you really don't need this money today. They may be willing to pull the trigger only at higher levels and after the cancer data. It's a fair question to ask them and needs clarification. But getting coverage needs the quid pro quo as PL said to us. I'm neutral on the money raise but hope it leads to coverage and a spike in interest. If this gets share over $7, I'm ok. But we need a bit of clarification.
1998novl wrote: Sensible strategy