GW Pharmaceuticals Plc ADS (GWPH)

[redwagon]

Don't be surprised if the offer price for new shares is in the $120's. 85% of the float is already held by institutions that leaves about 3 million shares traded and owned by individuals. If some one wants to take a large position (say 2 million shares) and did it on the open market, the share price would go through the roof before they got their shares. But if you basically buy them right from the issuer (GWPH) they can get a set price which will not be below current market price. GWPH does not need to sell shares now, just to survive like many companies do. With all of the cash they have on hand they can finance the period of time required until they cash in on FDA approval. This is just some big buyers wanting in on the action the cheapest way they can get in.