On the same line with you, my friend. It's quite ironic that I am increasing my position at this time, but that may be the only way to make up for the lower overall enterprise valuation that I now anticipate this company achieving, even in a buyout.
The primary damage done here is reputational, much more so than the financial, emanating from this dilution. When you make deals with the bottom feeders that you absolutely know will hurt your non-collusive investors you utterly destroy your credibility in front of more sophisticated (and bigger) players. The science will certainly offset some damage during negotiations but now big pharma will know exactly who they are dealing with.
Anyone questioning whether this offering is really a ransom needs to keep thinking until they get it. No other possibility here makes any real sense. You don't make deals at a 10 year low, with a 20% discount on top of it, to raise 4 months worth of capital, while being aware for several months that you are no closer to a deal and also watching your stock tank (of course through HFT manipulation), unless there was an under the table handshake.
There is a way to restore some dignity here; fire the entire darn BOD and most of upper management, which I know won't happen. And if it magically does, I wouldn't want to endure a new management's potential new direction. The only thing I'm counting on is hedge fund greed. I will continue to add opportunistically.
