The thing is that in the EYES rights offering:
"Under the proposed rights offering, Second Sight would distribute one non-transferable subscription right for each share of common stock held on the record date. Each right would entitle the holder to invest $0.47 at a subscription price that will be determined at the end of the subscription period. Rights will entitle existing shareholders to purchase units consisting of one share of common stock and one warrant to purchase one share of common stock at the subscription price. The subscription price per unit will equal the lesser of $2.00 or the closing price per share of our common stock on Nasdaq on the close of the subscription period. The subscription period is anticipated to extend from the effective date of the registration statement through about 25 days thereafter."
Like I said, they held the price steady around $2 up to the announcement. After that it dropped rapidly to a low $1.35 around a week before the closing date. During that 1-10 period it recovered a little and on the record date of February 9 shot up to $2.76.
It immediately collapse back down to around $1.50. EYES managed to raise 20 million dollars with sale of 13.7 million units at $1.47 a unit(1 share + a 5 year warrant with an exercise price of $1.47).
After the deal finally closed, EYES continued its rapid descent to average about $1.20 a share since.
Also, the EYES warrants trade on the NASDAQ and offer hedge funds a means of shorting EYES while hedging their bets with the warrant.
Twenty million would offer MNKD only an additional 10 weeks of operating expense coverage, but would likely produce the same pattern to the stock price.
Whether that's terrible or not is a matter of perspective, I suppose.
