Armata Pharmaceuticals, Inc. (ARMP)

[lesgetrich]

If you look closely, however, it's not as bad as it may seem...

Ampliphi Biosciences Prospectus

As of the date of this prospectus supplement, the aggregate market value of our outstanding common stock held by non-affiliates, or public float, was approximately $17.3 million, based on 9,271,504 shares of outstanding common stock held by non-affiliates as of the date of this prospectus supplement, at a price of $1.87 per share, which was the last reported sale price of our common stock on the NYSE American on January 8, 2018. Pursuant to General Instruction I.B.6 of Form S-3, in no event will we sell securities registered on the registration statement of which this prospectus supplement is a part in a primary offering with a value exceeding more than one-third of our public float in any 12-month period so long as our public float remains below $75.0 million. Other than the securities offered by this prospectus supplement, we have not offered any securities pursuant to General Instruction I.B.6 of Form S-3 during the 12 calendar months prior to and including the date of this prospectus supplement...

In other words, they can't sell more than 3,090,502 shares in any 12 month period. There have been several days recently when more than 3 million shares traded in one day. Also,...

...The number of shares of common stock to be outstanding immediately after this offering is based on 9,325,595 shares of our common stock outstanding as of September 30, 2017. Unless otherwise indicated, the number of shares of common stock presented in this prospectus supplement excludes as of September 30, 2017:


• 1,116,765 shares of common stock issuable upon the exercise of outstanding stock options, at a weighted-average exercise price of? $3.19 per share;


• 4,580 shares of common stock reserved for future grant under our 2016 Equity Incentive Plan, or the 2016 plan;


• 21,016 shares of common stock reserved for future issuance under our 2016 Employee Stock Purchase Plan, or the ESPP; and


• 8,712,220 shares of common stock issuable upon the exercise of outstanding warrants, at a weighted-average exercise price of? $2.91 per share.

Roughly 10 million shares can't enter the float or be counted as outstanding unless the pps reaches a minimum of $2.91/share.

Consequently, while there will probably be a 30% dilution spread over a year, we were destined for a 50% dilution once we reached $3/share+ anyway.

The outstanding shares for this stock are currently ridiculously low. The technology that they're working on is revolutionary and the results of their Phase 1 clinical trials are outstanding. There's no reason to believe that this stock's pps won't continue to appreciate as more people become aware of the potential for their product to disrupt the way antibiotics are developed.

Zacks Small-Cap research currently pegs the company with a valuation of $5/share assuming there will be 12 million shares outstanding in 2018 (see page 5)...

AmpliPhi Biosciences Corp.

They're currently just following their business plan.