Ayala Pharmaceuticals Inc (ADXS)

[ignatiusrielly35]

The dilution was painful, but if it accomplished the objective—getting the short suppression scheme stopped—it was probably worth it, imo. The stock has been devalued by 20% but we were/are trading at something like 10% of fair value. If a large percentage of that fair value gets unlocked now then the company is in much better shape, because the future (as opposed to past) cost of capital goes way down. It would also set up a relatively easier road to selling the company for fair value at some point, as well as possibly garnering better partnership deals if they involve equity. I’m hoping/assuming that these considerations were a major rationale for doing the offering.