SPCEO1 wrote: That three month reprieve at no cost to shareholders is very good indeed! The alternative - deep dilution via more warrants issued to Marathon, a higher interest rate paid to Marathon or some other action taken which would harm current shareholders (which now include Marathon indirectly via their 5 million warrants which could really make this loan turn into a huge homerun for them) - was avoided. The possibility of one of those nastier outcomes occurring certainly contributed to the stock selling off so much recently. So, with that off the table and a very good indication that Marathon is a good loan partner and not a cut-throat operator, the stock should have a nice bounce. Any trader who may have been shorting the stock on hopes for a nastier outcome shoould be looking to cover on Monday.
Also, note that Marathon first gave a 4 week extension and then lowered the liquidity requirement to $15 million. Marathon knows everything about what is on the table at THTX, unlike shareholders. Could it be that THTX is in the middle of some important negotiation and Marathon knows it looks good for THTX? Since they want to make a lot of money on their 5 million warrants, they may not want to jeopardize whatever those negotiations might be by penalizing THTX at this time via higher interest rates or more warrants. If THTX does not get it wrapped up by October 31st, then maybe it is a different story. So, to me, I am thinking there is a chance some deal is in the works that Marathon wants to support because it will benefit its warrants and this might explain why they did what they did. That deal would likely be related to cancer and THTX might have told Marathon they need that much time to get the preliminary TH-1902 data to conclude the deal. Just guessing but that is a plausible scenario.
Let's say they enroll the first patient on Monday. Then enroll the next five over the three weeks following. By the end of September, that first patient as well as some of the others will have had 6 treatments. I am not sure when they will be doing scans but I am guessing they will know if things re progressing well. That preliminary info can be used to share with anyone since this is an open label trial. It may be sufficient to sign a partnership deal with some other drug company. We know the ASCO conference generated interest in TH-1902 so it is possible a partner is lined up and just wants some more info from the restarted trial before pulling the trigger. It may also be enough to sell a small amount of equity in the company at more reasonable prices if there is no partner lined up.
There are other alternatives as well to get cash back to the $20 million mark by 11/1. Those are not as attractive (selling shares via the ATM, for example) but they be utilized if needed to get to the $20 million mark.
Also, I assume Lafond and Marsolais were still restricted from exercising their options and trading the stock through yesterday. So, with this news out, there may now be a 10 day period open for them to decide what to do with their options.
juniper88 wrote: There won't be any results of the TH1902 trial by the 31st of October. They haven't even enrolled anyone yet. Yes, they got a 3 month reprieve but beyond that I don't see how this is good. What is Paul expecting to happen in the next 3 months that we don't know about?