Ayala Pharmaceuticals Inc (ADXS)

[equaloppforall]

Gantor, if the shares from the public offering are not intended to be routed significantly to the short hedge funds, the offering makes zero sense. It should have been clear to management for some time that the share price was headed to the gutter unless they pulled off an indisputably great deal with sizable upfront money. Since they didn't manage that, the only other way was to pay a ransom to the manipulators to get their boot of the stock. Since they are doing the latter, once can only assume that they failed to get a favorable deal.

While I am generally very forgiving of infractions in the small cap biotech sector, given the many regulatory hurdles and limited resources, I have to, for the first time, fundamentally question ADXS management's skills as well as ethics. If they had the former, they wouldn't have had to deal with the devil and compromise the latter. I am confident that the PPS will now rise significantly just as it did in 2015, owing to the hedge fund's self interest, even though I no longer trust management. The science remains extremely promising as ever and may well catapult the stock with the right catalysts but I doubt that this management has the right abilities to realize the company's full potential. If we could prove this collusion, this would be a major illegality. I doubt we can.