Oncolytics Biotech Inc T.ONC

Trading on the 15th

[Reidism29]

Hello All. I'm a silent long, in since the beginning. I rarely post, but I appreciate reading your comments. I am still greatly mystified by the events of the 15th and looking for sensible explanations that will satisfy my need for understanding. It was a huge amount of dilution, from my position, and would require very strong justification. Dilution that would also impact management holdings. I am hoping it was justified by what will unfold.
Discussions on ATMs suggest that they are a good way for companies to trickle shares into the market without impacting price very much. 33M shares traded in one day, 27M in the pre-market, is astronomical (unheard of?) volume. Something like 100x daily average volume. The large majority of it in the pre-market, where relatively few sellers and buyers are present. In fact many brokerages only allow limit orders in after hours trading because of the associated volatility created by the thin market. Some don't even allow it.
So if ONC (or their agent) was flooding the pre-market with ATM shares, it should have cratered the price. They could use limit sell orders to establish a floor, but they would quickly exhaust the buy orders with those volumes, in that thin market. Unless there was a pre-arranged buyer present with the means and desire to soak up all that volume in a pre-arranged price band. Which smells like partner acquiring a significant stake in the company. (Q: Why not just do a bought deal financing? Possible A: Urgency?) My understanding is that they have to declare their intentions within 10 days when they cross the 5% threshold (Nasdaq). 5% would be roughly 4M shares, a fraction of what went down.
I would appreciate any other thoughts on what happened that day, and how it ties in to what may be going on behind the scenes now.

[BuddyBaker88]

I'm wondering the same. The additional shares aren't showing in the share count yet. It seems it's: a bought deal financing (unlikely with no NR); partner buying shares ahead of deal. (Incidentally the future increase in S/P alone could pay for trials on its own) ; an investor providing trial funding. (Seems most likely IF a partner won't step up yet. Company basically saying if

[Reidism29]

Yes the future value of those 33M shares could fund a lot of things: capital injection, milestone payments, trial funding, all created by the price run-up following a partnership announcement. (And the dilution of existing shareholders.) A handsome buy-out offer will lessen that disappointment considerably. Or entirely.

[Reidism29]

Maybe this is the way many/most/all partnership/buy-out deals start out. Anybody with prior experience care to comment? Canadafan?

[canadafan]

I have owned a few companies that were bought out. generally nothing what so ever as a clue.. one for example, I listened into the yr end review. CEO, congratulated staff on a great year, was discussing future plans etc. all very normal. Then two months later a trading hault with a buyou5 notice. granted there was a bit of a run up in trading price, prior to year end. Volumes? I did not pay