RE:RE:Additional thoughts on the ATMInstitutions cannot buy enough of the stock to make an impact in their portfolios without sending the share price a lot higher because it is a small cap stock. So they tell the company they will buy a big chunk in an offering, which the company likes because it gets a big new injection of cash. Shareholders like ourselves, however, are the loses as the new buyers get in without pushing the share price higher. Meanwhile, management gets money to play and ensure their $2 million compensation package is assured. So, it is ugly for legacy shareholders and hurts the stock in the short and long run as investors see how easily management will take actions to harm their interests. Management always indicates they needed to do this to increase liquidity in the stock but that is just a convenient excuse for harming their legacy shareholders. As you said, the obvious answer is to convince them to buy the shares already outstanding and push the share price higher. But weak managers almost always take the money without considering the dilution and long term reputation and costs, as we already saw in the OO/NO earlier this year. The money is right there for the taking and turning away from it is only done by great managers.
qwerty22 wrote: Can the ATM be something to do with the lack of liquidity in the stock. Is there not enough sellors? The obvious answer is to let the stock go up but can this be a tool to deal with short term illiquidity?
I don't know the processes of the market, stab in the dark.
SPCEO1 wrote: If the meetings with US institutions went verry well last week (and I could see how that might be the case) those institutions might be pressing THTX to sell them shares. But if THTX was going to do that, why would they set up an ATM? Why not just do a regular offering under the current $150 million shelf offering that I am pretty sure is still in place? Since this is apparently not the case, it seems to me they intend to sit on this ATM option until a more optimal time to sell shares, just like they have sat on the shelf offering for nearly two years.
In the last conference call, the words "shareholder value" made an appearance. Those words have not been uttered a lot by THTX management over the years and I was heartened to see them make an appearance. Hopefully, we will see them back up those words with action and continue to process of rebuilding their credibility with investors. Everything will be easier for Paul and the board in the years to come if they are able to rebuild that credibility and everything will be harder if they blow it up once more.
There is a classic proverb in the Bible; "As a dog returns to its vomit, so a fool returns to its folly". Let's hope THTX management and board do not return to their previous folly.
I have asked Leah Gibson to priovide any context she can regarding the deal and will pass along anything she might offer in that regard.