RE:RE:RE:RE:RE:RE:RE:Additional thoughts on the ATM The timing is very odd except for one fact. They just did a lot of meetings with Cantor clients and they are desperate for someone to write up a full fledged report with the whole pipeline valued. Otherwise, why wouldn't you wait to see MTD and POC news. The question is, what is that worth? Clearly not issuing all $50mil around these prices. That would be criminal. But in signing the deal, Cantor knows that at some point in the next 18 months or so, they will get a sales commission on $50mil worth of shares for their clients or others THTX introduces to them. So it gets them on board cheaply and if THTX are smart, they tell Cantor clients to start in the market and they may have to wait until oncology news to possibly acccess the ATM facility. They certainly owe it to shareholders to do any share sales at much higher prices after significant news. I can't imagine Soleus, Armistace, Stonepine, SPCEO would go along with selling at anything less than loser to fair value post a pipeline milestone in oncology. Now maybe they will let 2 or 3 top Cantor clients (picked by Cantor and informed to THTX) buy a tad if shares move up over $4.
From a project and news flow timing, I don't see anything going on now that would 1) require this money, and 2) that would justify selling more shares prior to a new milestone happening. I discount the need to show strength in NASH negotiations (I put it as a possible reason too) only because I think it will take a much longer time for anyone to understand the science, the approach, the protocol and then to figure out how to structure a deal. That will take at least as long as until the oncology news picks up so why not just wait to see that price level get achieved.
The filing may be because it was done after the cutoff time for Friday publication. Either that or they were pressured into late Friday by Cantor who forced them to sell to a client Friday or Monday so needed to announce it. We will learn, but it's not great form either way. I think the use will only be discussed after the filings showing what was sold but it wouldn't surprise me if it just says " overall corporate purposes". That would clearly indicate it was to get Cantor on board for analysis and banking in the future.
My price level views are clouded by a view that oncology is going well and if we see any mild POC and efficacy it means they are in a massive revenue market -something that could propel the share. So I would wait for cancer news before doing anything; hence, below $7 I would view negatively, above is fine with me for where P1 would be.
palinc2000 wrote: Apart from them pulling a rabbit how do you feel about the timing of the announcement i,e, low price and low volume environment ,appearance of precipitous decision ,impossibility to get access to the Prospectus Supplememt which may or may not reveal any new info ,not even a broad outline of thre intended use of the proceeds etc
Wino115 wrote: We may get more answers from Cantor. Perhaps ask same questions you asked LG to a Cantor salesperson. I have to believe that since they clearly do not need any money at this point and they are hopefully getting good advice from the Board on shareholder friendly policy, that they do not remotely believe they should be issuing shares here.
If so, it would only be an indicator. An indicator Cantor does want to bank with them and cover them. Research has to be on the way in the next 3-6 months. Cantor may be able to find a few preferential clients that if interested they can help them start a position (let's hope THTX do no more than $10mil that way). I think it does show some positivity around oncology in that they believe the share will react at some point in the near future. I'm not sure it would help in NASH as it's not enough to convince anyone one way or the other.