RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:National Bank CommentsI have not had a chance to sort this all out yet but it sure seems complicated. It looks like Investment Quebec does not want to own more than 19.9% of the stock.
Dilution could be more if Cantor can place the extra 15%.
It will be interesting to see who the other buyers might be and if insiders are buying significant amounts.
SPCEO1 wrote: I was out of the office today so was not operating with all the info at my disposal. The dilution is a bit more than 50% and Quebec will now own a bit more than 25% of THTX, so the board is now protected from any shareholder recriminations for the disastrous share price performance over the last 5+ years. So, this seems to be the best explanation for the timing and size of this deal.
Purportedly, the deal is oversubscribed. It will be interesting to see how the stock trades later today when angry shareholders face off with the possibility of new shareholders looking to add to their new position. But who are these new shareholders and how did THTX convince them to buy? There was a call at 5pm today for those buyers but I could not be on it. If anyone here was on it, I would be interested to know what THTX's sales pitch was.
PWIB123 wrote: These were the only reasons I could think of as well. Not one single plausible possible explanation. I sit here asking myself, are they really this stupid? If not stupid, are they really this selfish? I think they just used their last lifeline and will be too arrogant to salvage what's left. The order of events that are transpiring don't make sense.
SPCEO1 wrote: Why do this deal now? We can only speculate but here are three guesses:
1.) The financial engineering required to produce the good results at the end of Q3 have started to reverse and they were likely to violate the $20 million cash buffer again. But why raise so much and dilute current shareholders by so much even if this was the case.
2.) The first TH-1902 patient has already seen some toxicity leading the company to be concerned about the outcome of the trial and the ability to gain cash from psrtnership deals.
3.) They were worried that shareholders, who came very close to firing them at the last AGM, might call a special meeting to actually do it this time. By doing such a large offering well before it was necessary, they cut that possibility off at the pass. Yes that is ugly but this seems to me to be the most likely reason for the early timing and large size of the offering.
juniper88 wrote: My point was more like "buyer beware". They threw us under the bus (twice now), soleus (if they sold it was at a substantial loss), and Paul will have no loyalty for the next investor either.
And what is the point of laying off all those scientists if you're going to do this? The more I think about this the less sense it makes.
mikeq113 wrote: This assumes Soleus is still around. They may have already exited given how substantial the selling was around the reverse split.