There are warrants expiring in Sept 2015 which will likely generate $6-7m of cash for the company. That is enough cash to carry them until mid-2016, which is well beyond any FDA decision date. So I think issuing shares in a private placement this year is unlikely.
According to the prospectus dated Sept 15, 2014, page 31 lists previous share issues. It shows warrants outstanding which expire two years after issuance as follows:
- 1,367,069 warrants exercisable at 40 cents issued Sept 20, 2013
- 15,517,241 warrants exercisable at 40 cents issued Sept 26, 2013
- 194,189 broker warrants exercisable at 33 cents issued Sept 20, 2013
- 2,172,413 broker warrants exercisable at 29 cents issued Sept 26, 2013
If 100% exercised, warrants will pump about $6.8m into the TST bank account (in return for issuing common shares). Similarily, the broker warrants will pump $694,000 into TST's bank account. If a warrant holder does not exercise, then his/her warrants will expire worthless. There is no public market where they can be traded.
If the share price is above 40 cents in Sept this year, then warrant holders will likely exercise. What are the chances? The conference in California in January this year drove the price from the low 20 cent range to the mid-30 cent range. TST lists two conference in March alone. Plus, we will likely see a stock price run-up in the months prior to the FDA decision. All the fast money speculators exiting Friday and today (
many of whom post to this board) will come back to ride the momentum. We got al the way to $1.80 leading up to the Phase 3a results announcement a few years ago. Wait until you see the climb prior to the FDA decision!