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Oncolytics Biotech Inc T.ONC

Alternate Symbol(s):  ONCY

Oncolytics Biotech Inc. is a clinical-stage biotechnology company. The Company is focused on developing pelareorep, an intravenously delivered immunotherapeutic agent that activates the innate and adaptive immune systems and weakens tumor defense mechanisms. This compound induces anti-cancer immune responses and promotes an inflamed tumor phenotype turning cold tumors hot through innate and adaptive immune responses to treat a variety of cancers. This improves the ability of the immune system to fight cancer, making tumors more susceptible to a broad range of oncology treatments. The Company’s primary focus is to advance its programs in hormone receptor-positive / human epidermal growth factor 2- negative (HR+/HER2-) metastatic breast cancer and advanced/metastatic pancreatic ductal adenocarcinoma to registration-enabling clinical studies. In addition, it is exploring opportunities for registrational programs in other gastrointestinal cancers through its GOBLET platform study.


TSX:ONC - Post by User

Post by Probosciseson Jan 10, 2023 7:35pm
300 Views
Post# 35214679

Unnecessary dilution of shares not in interest of insiders

Unnecessary dilution of shares not in interest of insiders

A certain amount of cash is necessary to maintain solvency and a strong position in relation to potential purchasers. Any weakness will be exploited. Therefore, dilution is a necessary evil, but only when necessary. 

However, now that a partnership agreement or (more likely) a buyout are imminent management will not want to dilute the shares more than necessary. For example, an additional 10% of shares (about 6,000,000 more) would mean that the value of existing shares and options on buyout would be worth about 10% less. So if the buyout price was $4 billion and Matt's share was around $80,000,000 then a 10% dillution would have cost Matt around $8,000,000.  So I don't think any of the insiders will want more dillution than necessary. 

 

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