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How is securing a min of $30M in funding a bad thing? They now have financing through FDA approval.
Rights offering begins in July, Backstop offering begins in August where every two weeks buy $1M in DCTH stock or 20% of total dollar volume for preceding 5 trading days every two weeks until the agreement expires.
Bond,
Am I correct in saying DCTH has locked up a min of $30M to max of $50M in financing? This is huge, IMO.
Price collapse? I believe the purchasers are buying at a fixed rate if I’m not mistaken. And they prohibited from shorting.
It would be nice if DCTH put out a PR in morning explaining the highlights.
There are two components of the deal. I am not sure I understand the first part other than what amounts to short term spending, where they exchanged a million shares for $3 million bucks —I assume to keep the the lights on.
Beginning in July, they buy at offering $1.75 share. Afterwards, the second phase kicks in and they are committed to buy either $1M every two weeks or 20% of total dollar volume in preceding 5 business days every two weeks. Also at $1.75 share.
At least that’s how I think it’s going to work, lol.
Folks seem preoccupied with the 1st part of the deal. Am I wrong to say it doesn’t matter because the purchasers start buying in July. In August they start the second round which requires buying $1M worth of DCTH stock or 20% of total dollar volume every two weeks.
Seems to me DCTH is highly incentivized to make sure volume is high to keep the delta between the million dollar threshold and the 20% total dollar volume as tight as possible.
You even bother to read the 8K? Good grief.
The deal seems pretty good to me.
Rights and obligations in this agreement very different than HB.
MAJOR CAVEAT: This is just my first cut, a general overview that doesn't account for all possible scenarios or variables. Folks should do their own analysis and please feel free to dissect and highlight any errors I may have made. Unless I am mistaken, this looks to be a pretty impressive deal that will get DCTH across the finish line without having to worry about BK. Yeah, they are buying at a discount, but they are also buying $30-$50M worth of DCTH common stock. And, they will be buying as early as next month I believe.
What am I missing?
Two Rounds of Buying.
I. Rights Offering:
1. 2 Purchasers (assuming but only found Discover Growth Fund listed in Agreements--thoughts anyone?)
2. Rights Offering: buy DCTH common stock at $1.75/share
3. Date: 1 July 2018
4. Subscription Period: 1 July – 31 July
5. Rights Offering Extension Period: +30 days (31 August) or
expiration date reasonably determined by BOD
6. Once Rights Offering has ended, Backstop Offering kicks in.
II. Backstop Offering:
1. After Rights Offering period ends, Backstop Offering kicks in
2. Purchasers can buy shares of common stock not issued in the
Rights Offering
3. Price: $1.75/share
4. Terms of Backstop Offering:
a. Every 15 business days Purchasers must buy the lesser of:
i. $1,000,000 worth of Purchase Shares or
ii. 20% of the dollar trading volume of DCTH common stock 5
business days preceding Purchase Date.*
iii. Option for purchasers can offset (if so chooses)
proceeds from purchase against notes owed to DCTH.
5. Purchasers must buy every two weeks until the expiration of
agreement
III. Purchasers commit to purchase $30-$50M DCTH stock, though commitment is reduced by amount of Rights Offer + bi-weekly purchases.
*Example of 4.a.ii (20% dollar trading volume). Using the date range of 15 Feb - 22 Feb 2018, the dollar trading volume (adjusted for 500/1 split) was roughly $2.3M (225,903 shares @ $10.36 avg.). 20% = $468K. In this instance, EACH purchaser would be required to purchase $468K as it is less than $1,000,000 for that particular two week period.
Love Kung Fu Panda and that made me chuckle, thank you.
So i am just diving in. I see Discover Growth Fund is the $880K.
Not sure I’d say “wise” as much as “stubborn”. But get, new deal and still alive and kicking baby!
Tom is a POS.
Can you elaborate?
DING DING DING!!! That’s #4!
Well you said it hasn’t made any money in 8 years, but’s that’s factually incorrect.
I never would have invested in DCTH until it was within 12-16 months of FDA approval. What would have been the incentive in 2014, 2015, 2016, and 2017 as they were snaking their way through the FDA clinical trials? That’s like watching paint dry, IMO. DCTH had only one clinical trial over a 4 year period and only recently has their been a 2nd (ICC).
I suspect many folks didn’t sell after that massive 1,000% run in 2017 and saw profits evaporate. Then came the two reverse splits. I understand why people are hot under the collar.
I wonder if things would have been different had shareholders voted to give her the RS last August? I think so.
It’s June 2018 with a new deal keeping them going. A deal without massive dilution—as she said wouldn’t happen again. This deal works for me.
I don’t often agree with Sam (setting aside for a moment this will be twice in one day), but it’s crystal clear this is Jenny’s show until approval.
She’s clever.
It made $2.7M last year, up 33% YOY from FY16.
See, this is how it goes:
Three times today you’ve attempted to emasculate me hoping to provoke a response sufficient enough to get me TOS’d and back in the Big House.
It took me awhile to game it, but it won’t happen thrice.
I didn’t hear that at all and I’ve been listening and attending them all.
I’ll agree to disagree with you on that one.
Where did she state no NDA before end of 2019?!?!?!?!
Oh, and if you really had anything of substance you would have dropped the hammer. So you know, there’s that.
I’ll take your last jibe with a grain of salt given if this play flames out, I will be made a castrato.
Sam, it’s funny, and I hate to say it, but I agree with you.
Bond,
I’ll also take a peek at this. This is substantial if true.
To your knowledge no company did. Then again, no one else said DCTH was going to hit $370 a share.
Hard to be riding a high horse when you’re sitting on a Shetland pony.
If you find out they plan on acquiring DCTH at $30 share I will give you a big fat kiss AND pay the Hong Kong hosting fees for next year!!!
Nice bird-dogging RDW, I’ll have to also poke around.
And I understand completely. You know I’m all in, so absent glaring illegal activity (not vague and shady allegations as some dabble), I’m stepping out of her way to the finish line.
Um didn’t you just recently post you bought back in? Lololol
They just PR’d 2nd safety analysis green light on the only thing that caused the FDA no go in 2013. Enrollment update second half 2018. Now doing chemsat on colorectal cancer.
What else is needed? Right or wrong our shareholder wagon is hitched to Jenny. It’s clear she intends to go it alone.
I think if you take I to consideration the possibility the NDA will be here sooner rather than later, this deal makes perfect sense.
Your point?
You don’t believe NDA will be our before end of year?
Correction: each day you hit the snooze button.
As a pause button. Entry day you keep slapping the snooze button brings us closer to NDA and FDA approval. Just sayin.
Night all!
A time of great knowledge or great wealth?
You are the human magic 8 ball!
You sold your position today. Given today’s 8K, will you buy back anytime soon?
Shhhhhhh.