Evening all. Wanted to give my thoughts on the offering.
My initial reaction was similar to what others have posted. Read it this morning, bought more shares. Maybe I'm crazy.
I'm just having a hard time convincing myself this is awful news. So 6.5 million shares possible dilution or so. Fair exercise price means this increases the float by an automatic 6.5 million shares in the longrun, assuming warrants get exercised. The price hadn't had a ton of trouble staying above $1. Maybe that will change, but I don't think 6.5 million extra shares is enough to scare away traders when data approaches. Our recent competitor with news made significant one day gains on preliminary data. Our trial even if delayed should still be further along. I like ours a little better, hard to compare them though. Gains didn't last, but that won't keep anyone from doubling up on our stock that was wise enough to bet on the first one. I think the other stock's recent movement will really bring our stock to a wider audience. Anyone who googles SARM is going to find our company fairly easily.
In my opinion, the upcoming earnings might put them closer financially than they thought, ?possible explanation for slower recent trials. Maybe not. If they waited to offer, their financials would've been bad... doesn't really both me this close to two trials of data, could assume an offering was coming, they waited this long to partner, this would buy them time to find a partner, they probably wouldn't get half the deal now that they would get in a few months. I'm glad they didn't partner and went this route.
If the data stinks, why would they only raise $5 mil? I've seen stocks sell tons when they are facing hard times. I found that reassuring. If price really moved past 3.00, and warrants were assumed to be cashed, OS would still be ?under 40 million. Two good trials and $200 mil cap by end of year is fair, still a $5 stock at that point.
Good to know it's a private offering. Maybe someone will sell them reasonably like the last warrants were traded. Maybe someone will take a bigger stake. I still like the 1.50 entry point of the old warrants. As the data approaches, I think people will start to notice, especially if they noticed other sarm news lately. So yeah, bought more.
Any criticism welcome, convince me otherwise and save me some money!
