"I'm betting on at least 20% discount. Piper Jaffray are ruthless"
Totally agree. For a micro-cap, high risk, recent tainted background (SEC fines and all) OTC play "trying" to step up and unload 10 million dilutive block trade shares- I've easily seen 20% discounts many times in these situations. A "standard" underwriting discount for a near blue-chip level offering is 7% to the underwriter. It's way, way more on these micro-cap deals. Look at Advaxis, ADXS, a cancer immuno play- they just did a couple of secondary rounds, and the discount was steep, real steep and they've got trials in phase 3 now.
And I'd say 90%, if not every last share of those 10 million secondary shares hit the markets as "free trading" within months of the offering closing, "if" and when they ever close it. A lot of those shares will be going to hedgey fund boys and similar- so don't be surprised IMO if they also short like mad men on it after the placement.
It's gonna be a wild ride IMO. I'm also on the sidelines until the dust settles post any offering finally pricing, selling, and the post trading action afterword. If I miss a blip or some upside percentage gain- so be it.
I've seen more of these end up to the downside than upside- post a 30% highly dilutive placement on a no income, low cash, cash burner, no approved product type company. It's a long slog from here still- real long.
AI
