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Oncolytics Biotech Inc T.ONC

Alternate Symbol(s):  ONCY

Oncolytics Biotech Inc. is a 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 phase 3 licensure-enabling studies. In addition, it is exploring opportunities for registrational programs in other gastrointestinal cancers through its GOBLET platform study.


TSX:ONC - Post by User

Comment by lonc17on Feb 27, 2024 4:07pm
111 Views
Post# 35902328

RE:RE:Dilution...

RE:RE:Dilution...Here's some math, Canadafan.

Let's say you own 7 million of the existing 70 million shares, valued at $1 each..  You own 10 % of the company. Your investment is worth $7 million.

Tomorrow, ONC issues 70 million new shares at $1 per share. There are now 140 million shares outstanding worth $1 per share.

You now own 5% of the company but the company is worth twice as much, so you're investment is still worth $7 million.

Right. So this is why dilution is a nothing burger.

Except for one or two small details.

First, the newly issued shares will never be at the current market price, and in ONCs history for poor management they could be issued at as much as a 25 % discount.

Second, the newly acquired money is great for a company with excellent management and an optimistic path for investment and growth. Sadly, in ONCs case it will be used for administrative expenses and will be burned without increasing shareholder value.

Very soon, you'll have 7 million out of 140 million shares and the value of the company will have increased by significantly less than double.

Existing shareholders always lose with dilution in a poorly managed company.

And ONC is a VERY POORLY managed company.
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