Friday, June 23, 2017 7:18:09 AM
These deals often involve selling shares to PIPE investors at some fraction of the current market price, usually restricted so that investors can't dump their shares before six months after purchase.
To make this work, investors have to believe they stand a near certain chance of being able to dump their shares in six months for a profit, realizing that all the other PIPE investors would be selling at the same time. That requires two ingredients: a sufficient discount to current market price, and belief that the management will be able to generate sufficient liquidity at the appropriate time.
Thus, liquidity rather than share price becomes the biggest problem for shit-microcap financing.
Anyway, with respect to NNVC, this seems problematic. Could they raise $10M today if they offered PIPE investors $0.50 shares? Investors would have to believe the market could absorb the dumping of 20,000,000 shares in six months time above that price. Even if successful, that would only support NNVC's current operations for another 10 months, without any of the associated costs of IND and clinical development.
I think NNVC is in a tough spot right now with respect to their ability to raise money. The time for them to do a PIPE was back in early 2016, while Seymour was selling the story they were going to be in clinical trials by early 2017. Spectacular "Skin-patch" results from Moffat won't cut it.
A casual stroll through the lunatic asylum shows that faith does not prove anything. Friedrich Nietzsche
Recent NNVC News
- NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • InvestorsHub NewsWire • 05/02/2024 02:07:42 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/16/2024 09:53:32 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 02/14/2024 09:55:35 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/19/2024 09:44:48 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 12/04/2023 09:08:49 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 10/13/2023 08:30:41 PM
- Form NT 10-K - Notification of inability to timely file Form 10-K 405, 10-K, 10-KSB 405, 10-KSB, 10-KT, or 10-KT405 • Edgar (US Regulatory) • 09/28/2023 08:44:54 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/01/2023 08:46:45 PM
- Clinical Trial of Broad-Spectrum Antiviral Drug NV-CoV-2 is Progressing Well, Says NanoViricides - NV-CoV-2 is Positioned to Fulfill Many Unmet Medical Needs • InvestorsHub NewsWire • 07/06/2023 03:16:37 PM
- NanoViricides, Inc. to Present at The Inaugural Ef Hutton Global Conference on May 10, 2023 in New York City • GlobeNewswire Inc. • 05/04/2023 10:45:00 AM
FEATURED NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM