Spectrum Pharmaceutecals Inc (SPPI)

[antihama]

the company opportunistically repurchased $10 million face value of its convertible debentures for approximately $9 million

I'm still thinking about this one. Hey, on the face of it, Spectrum made $1 M on this transaction but I'm starting to see it as somewhat more positive than that. Usually, if there is a potential negative future event a company will raise money as they did in the 2nd + 3 qtrs of last year when they raised 74M probably around or under a measly $6 per share. And of course right after that we get the Qapzola rejection of the NDA by the Advisory committee/FDA. So now they are using some of that precious money they acquired at ~6 per share to take advantage of a small business opportunity? Usually when Spectrum has less than $100 M in the bank they historically did a raise. They don't need to repurchase the 100M convertible debentures till the end of 2018 so at the very least I think they are confident enough they don’t have to worry about funding till then. So either they think the share price will go up so they can repurchase with a higher stock price or from funding rec’d from a licensing agreement say for EU rights to Rolontis. Or along the lines of a higher stock price, if SP goes over $10.53 per share the institutes can convert their debt to shares. I think it’s all highly positive and showing that Spectrum is confident of the future.