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It would be nice to know who bought, how many different buyers there were and if any exceeded the reporting threshold amount. Hopefully there will be a filing so we know.
Risk vs reward looks good to me at this level.
Sure the price could have been higher. But at the end of the day they got money they needed and unlike the convertible the purchasers have zero incentive to push the price lower now. And even at 1 billion shares assuming warrant conversion the stock is cheap at $30 million market cap assuming warrant conversion.
For me the question is would I invest in a company well into phase 3 for a deadly cancer treatment with no effective treatment that already has shown it’s effectiveness both in Europe and in a previous phase 3. For me the answer is yes and I added more at .02839. The stock in my opinion is too cheap.
Well using your numbers 500 million shares would be 40 cents and not 33 cents.
It has changed. They took away the concurrent placement of 2 warrants for each shares purchased in the 250 million shares offering. Instead they are selling units that include those two warrants per share.
There is also now no mention I see about asking shareholders for an increase in authorized shares afterwards. Even though if fully sold to cover the warrant exercise at some point they would need to raise authorized.
Interesting.
As of January 25 they each had a max of 11+ million or 22+ million total. So they could still have it. Or it could all be sold already as the stock has traded more than 40 million since January 25.
Below 5% ownership I don’t believe it has to be reported so who knows what is left. But if they wanted out since the 25th they should already be out. There was enough volume to be out.
Sam, that right there is huge and tells us that they did learn something. At 3-4 cents if they do as they say and avoid those toxic financings I feel really good. I feel really really good.
Even 1 billion shares at 4 cents non-toxic leaves us plenty of room for profit with a reasonable market cap.
I’m referring to your post of this from the filing:
“we do not intend to enter into any sort of variable priced financing in the future due to the highly dilutive nature of those financings."
Just before the table of contents
In a concurrent private placement, we are also selling to investors warrants to purchase two shares of common stock for each share of common stock or pre-funded warrant purchased in this offering (the “Warrants”). The Warrants will be exercisable beginning on the date on which the Company files an amendment to its certificate of incorporation (the “Authorized Share Amendment”), approved by its stockholders (such approval, the “Authorized Share Approval”), to increase the number of authorized shares of the Company’s common stock such that all of the Warrants may be exercised in full by the holders, at an exercise price per share of $ , subject to adjustment pursuant to the terms of the Warrants (the “Exercise Price”) and will expire on the five year anniversary of the Initial Exercise Date. The Warrants and the common stock issuable upon the exercise of the Warrants (the “Warrant Shares”) are not being registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the registration statement of which this prospectus forms a part and are not being offered pursuant to this prospectus. The Warrants and the Warrant Shares are being offered to a limited number of institutional investors only pursuant to an exemption from the registration requirement of the Securities Act provided in Section 4(a)(2) of the Securities Act and/or Regulation D.
Read further in the amendment. Additional warrants being offered beyond the prefunded warrants and an increase in authorized to cover them.
You are right. It certainly could be voted down and certainly could drop as you said as badly as a reverse split. I think increase in authorized will be easier to swallow than a reverse split and won’t drop like it would after a reverse split. And they have a better shot at shareholder approval than a reverse split in my opinion. But you never know.
I believe they added a section for additional warrants in a separate offering and an increase in authorized shares to cover them.
This is good. In the amendment to cover the additional shares for warrants they will now issue they are asking for an increase in authorized shares. I totally agree with what Sam was saying that hopefully when needed they will decide to increase authorized shares rather than try reverse split again. And it looks like that’s what they are doing so I am happy to see that.
Good then it would have been today. Maybe the final big blow out today with the restriction gone. We can only hope.
As you mention it does make you wonder what the point was in making them wait 15 days.
Ok. Also don’t forget to exclude Jan 15 holiday.
So the restriction ends after 15 days. On the 16th day the restriction is gone.
So today would be the day.
However I believe the filing said to start counting the day after the agreement, but maybe not.
15 trading days from dec 28 is more like what Sam said. I think I get tomorrow but it could be today. Depends if the 28th counts.
I added 10,000 today.
All you have to do is look back to last summer to see what is possible with the right news. Last summer there were 500 million shares out with the stock around 4 cents and the company was on the brink of bankruptcy because they couldn’t access the restricted money. Yet on news of the reverse split not passing, which made bankruptcy more likely, it ran to 35 or 40 cents in days. So now if they do this offering we are looking at that same market cap, 500 million shares at 3 or 4 cents, but better cash position from the offering. Why couldn’t it run like that again on decent news setting off a buying panic? The company is further along having passed the interim safety analysis. At this stage and with the cash from the offering the market cap is too low. With decent news and pressure from the conversion gone it could certainly run like that again. It did it before in worse circumstances. Market cap is too low for a company that is well into phase 3 on a product we know works. Just my opinion.
Warrants. It is confusing with all the amended agreements, but what I see in respect to the amended agreement on October 10 is that In lieu of the “true up”, on or before the 135th date following the date of consummation of the offering referred to on oct 10 delcath may buy out that provision for $6,138,349.80. Are these the 300 million warrants he is referring to? The true up increased the number of warrants. If so they gave themselves the ability to pay it off and not issue all those warrant shares. I don’t know how they would have the cash to pay that off, but they must have had something in mind to include that out for themselves just three months ago. Unless I am reading this wrong. It’s not all clear to me.
Sam, I think you got it exactly right. Up until this exit agreement the more the stock went down the more shares they got to convert the debt. They had an incentive to see the price lower to get more shares. Now the number of shares is fixed at the 123 million. Pushing it down by relentlessly dumping means they get less money for their shares. They can do what they want but it is in the former note holders interest to ease up and let the price rise so they get more for their shares as the number of shares is fixed now. They hurt themselves now by driving it lower and lower.
Thanks Sam. Makes sense.
Sam, I’m just curious why you believe financing wouldn’t be for maybe 6 months when in last month’s pr they said funded thru January? Because the way I read the pr they include the conversion money in that expectation but I could be wrong. I’m really just trying to see if I missed something in regards to timing for the next equity raise. Thanks.
Perhaps what else is causing the downward pressure is the comments in the earnings PR last month. Perhaps this was discussed on here last month and I missed it. They said cash to operate thru January and it sounds like they are including the restricted cash that is freed from this conversion. Beyond that they said they were starting to explore their options for an equity offering to move forward. Well if investors know they are currently pursuing an equity offering and can remember how badly investors were hurt with the last one that would certainly inhibit buying. I know I think of buying but then I think of that and I stop. So the end of the conversion might not help if another bad offering is coming right behind it.