Closed solid red on higher than avg volume (about a 50% increase in the daily avg volume).
Any gain it made- it sold off into strength each time on volume.
It's showing weakness so far IMO despite the big move to the NASDAQ.
W/o some clarity on how they're going to finance and sustain themselves, let alone fund a serious phase 2 trial which is the key to their entire plan they presented- I think they're open to the pro shorts of the Nasdaq.
Until they clarify if it's all more dilution going forward- or some other funding source, then they'll be in a position of weakness to me. If they have to do a large dilution share sale cash raise then the price will most likely come under at least temporary down pressure- which may be putting buyer's on the sidelines until clarified IMO.
They are living off of Lincoln right now (in itself dilutive) and they don't have anywhere near the cash at this point to fund a high quality, much larger FDA level phase II trial. Lincoln pretty much pays their present burn rate- but doesn't in any way fund a serious trial that I can see. The numbers don't add up.
So some key pieces of the puzzle are still missing that they need to clarify. The share offer got pulled either because of weak demand and low pricing power IMO or they have some other plan they're trying to put in place (the shelf filing is still open and good as far as I can tell).
If they have something- it'd already be announced. Public companies can't sand bag or hold back major material events- if they know and it's a done deal then it gets made public ASAP and is filed with the SEC on an 8-K or similar of needed.
Which tells me at this point- they don't have it yet, whatever it is they may be trying for. Else, it'll be back to a dilution offering, a large one IMO. Maybe they decided to try and sell the shares once on the Nasdaq hoping for a little more pricing power? They spent a bundle on up-front fees and those underwriters and legal and all to pitch that prospectus- so to just "can" it, they must have a pretty good reason? Question is- what's the plan and where's the cash gonna come from?
My 2 cents
