RE: Can Anyone Clearly Explain The Selloffi don't think anyone can tell you who was selling, but lets consider some possibilities.
onc needs cash - their choices were to issue shares or sell an asset - they chose the latter. would they simply dump these shares without informing tth of their intentions? highly unlikely, imo. i'm sure they would give tth an opportunity to look for a buyer, which would help bring onc the highest price for their shares.
not surprisingly, tth also needs cash, but onc's holdings won't bring them any money - in fact, it makes it more difficult for them to sell their own financing at current prices. in effect, they have to find buyers for 6.8M shares held by onc and another 6M shares they need to issue to raise cash for themselves.
that means tth had to find buyers willing to commit $4.5M into buying tth shares, but tth would only get $2M of that amount.
the company already has over 50M shares o/s - considering that they are still in the very early stages of phase I, they are going to need to raise a lot more cash in the future - and at $.50/share or less, that means big dilution where they will likely have to do a share consolidation at some point (assuming they are still around) in the next couple of years.
in such circumstances, attracting that kind of money to a highly speculative company already burdened with a relatively large number of shares o/s, is not easy, even considering the recent biotech rally.
so who would put up the $4.5M to buy tth shares?
one posible explanation is people who had an asset (like 1.9M onc shares) that had recently dramatically risen in value, and were connected to tth.
maybe someone dumped half of their onc to buy back their former tth holdings? maybe this was all arranged before the run-up in onc?
i don't know, but i suspect this to be the case.
but of course, i'm sure 1999 has all the answers
