" they raised 45 Million through Piper Jaffray at 42% below the close on the day they registered to sell the shares,"
Yep, fits the Advasix model to the tee. I wanna say (I'd need to go back and check) - they were at about $6, maybe $6.50 and change after a R/S just like OCAT just did.
Advaxis then did a first secondary that brought um like $30 million I think - I wanna say it was clear down at like $3.50 a share maybe?
Then they just did another one recently and raised another pretty good chuk of coin at something like $4 a share maybe? Again, they have phase 2 trials done and a phase 3 in the works- and a lot of PR, like on the mainstream news, financial shows, etc.
That first secondary ADXS did, buried the price for quite a while- and it took like half a yr or more to recover it and then gain some ground.
OTC, micro-cap secondaries are typically brutal. Fact it- they're ultra high risk companies with no products, no sales, no cash flow, no prospects of cash flow or earnings for years, if ever. NO ONE who's a sophisticated bank/underwriter pays full price for that kind of risk.
Yes, as was stated earlier- they MAKE THEIR MONEY, the underwriter ON THE SPREAD PRIMARILY, plus huge up-front fees and expenses being charges. Higher the risk, HIGHER THE SPREAD as they, these underwriter dudes, no way they're gonna get stuck holding a bag of 10 million shares of some high risk micro-cap company they can't unload for a good profit.
They'e way more shrewd, brutal and street smart for that. These guys, these underwriters are better than an ATM machine when it comes to making money. They're the "House" essentially in Vega. They always "win" on these deals- that's their entire business model.
I agree- OCAT got sticker shock and balked. OCAT ain't living off of Lincoln cause they're some high demand, high end company. You end up at Lincoln when you're in the lender of last resort category for the most part. There's a few levels below Lincoln (Asher and a few others) - but Lincoln is scraping pretty close to bottom. So the idea these 10 million shares are gonna fly out at some premium is pure fiction in my book. No way does that happen IMO. Not a chance in heck to me.
AI
