Theratechnologies Inc T.TH

Best Option?

[longterm56]

One of the reports from SPCEO talking to the CEO awhile back said that Paul said "we have alot of options for raising cash. " So we have to choose one of the following: 1) they didn't choose the best option and therefore made a bad decision. 2) they were compelled to make this deal to move forward 3) this was the best option Since #2 is really the same as #3 there are really only two choices. I have to go with #3 realizing that I don't know all the details.

[SPCEO1]

Paul actually made that comment on one of the broker calls in the Fall and it gave me confidence that they would not do a deal that was foolish since they apparently had a number of good options. Right now, based on what is public, this deal seems to indicate they had very few options and had to grasp the money they could before the stock market bubble burst. I am hoping the opposite is actually

[SABBOBCAT]

Rusty, that's not how bought deals work in Canada. At least 50% of this will go to weak rental hands if not more. There wouldn't be a 6.25% selling commission if it were oversubscribed on the institutional side of things. All round just bad.

[SPCEO1]

I have seen those terms now from one of the brokers so it looks like it may well be what you suggest. Hard to believe but it increasingly appears this is just a really, really bad turn of events.

[Wino115]

I tend to agree with you Sabbo -- it's likely not one institution and there is probably some chunk for retail. That is also a very high commision but in line with small cap volatile unknows.  But I do think this shows something we've know -- that there is not an extensive and deep knowledge of capital markets and bankers between Dubuc and Levesque, or the Board for that matter. There&

[xena555]

You don't know what you're talking about.

[Wino115]

Baker manages $24bil, so this is super tiny for them.  One of their biggest holdings, though, is Seatle Genetics (SeaGen now).  We know that is very similar to what they are doing with SORT1 platform, so they clearly have knowledge in that area. It just seems way to small for them though but I'd love to be wrong on that. If it was the full 20% stake, there wouldn't be any reason

[SPCEO1]

Unfortunately, I think Sabbocat is right. This is a standard Canadian bought deal. One broker I know said his firm got a 20% allocation of the deal and that 15% of that was given to the retail side. He asked for more shares than he got so it appeared oversubscribed on the retail side. But the idea that a big institutional investor is involved seems highly unlikely. 

[Jasonthehumble]

I  AM PISSED. THEY SCREWED OVER THEIR LONG-TERM INVESTORS. HOW ABOUT TAKING CARE OF YOUR INVESTORS WHO HAVE HELD ON FOR OVER 14 YEARS AND HAVE NOT SEEN ANY APPREICATION IN PRICE? Now you are going to Dilute them cutting their value to 1/3 and you didnt sell to a large institution?! I understand that you need money to start on your phase I trials, but they is done at a wrong time...how about

[Wino115]

I wonder if the warrants will be separable immediately and will have a trading symbol and market?  Anyone know this.  To sell a non-tradeable warrant to retail guys is a bit perplexing and many may just dump those to lower their all-in cost.  Worth watching to see if these do get listed.  I'd be good with that!  But normally a more retail oriented deal should be more

[qwerty22]

You think they wanted this to happen Nov/Dec 2020 given the little pump that went on then but couldn't raise the level of interest? Pre the Jan news this might have been more understandable/acceptable.

[qwerty22]

Here's my next worry. Given they are getting cash in the bank early is there any chance the RBC guy is right and the wrinkles still to iron out with the Ph3 are substantial? It seems a stretch given the content of the PR but there's some wiggle room (I know there's always wiggle room). This just looks like standard wiggle. It really makes no sense for the FDA to say "

[SPCEO1]

Pre-offering, it seemed safe to assume that the phase III was a done deal despite that minor wiggling in the PR. And that getting the EMA on board seemed like a lock as well. Now, one has to wonder. Why the desperation to get a really awful deal done? Is there something ahead that would make raising money more difficult? These are logical questions and ones I asked the CFO last night. But I did

[qwerty22]

The Covid police came and broke up the party.

[juniper88]

The last time Thera did this, the warrants were seperable.  The problem I have with this is that now an "investor" can participate in the deal, then sell the shares at break even and keep the warrants as a risk free investment. Apparently last time, even though the warrants were in the money, many were never exercised.

[scarlet1967]

This is what happens when you turn your back on the retail investors, as I said it is in broker's interest to have the SP appreciate from the bought deal's price so they can sell it to their clients with a premium but they are against 85% of current retail holders of the company who are bailing out today tired of waiting even so within few months the company is initiating the oncology

[canadapiet]

In many cases, a dilution is beneficial and give confidence! In the case of TH, doing this at such a large offering at such a premium and with warrants, it is  a very BAD deal. It shows little confidence the BOD has and certainly shows that again the B P has no interest in the company. There are hundreds and more deals little biotechs are making, but TH can't find a partner ???? Why did