BigT,
Regarding the incentive for investors to cash in long duration warrants that are in the money, clearly these investors must believe the SP will go lower or want to drive down the SP or they want to move away from the stock for greener pastures. The ONLY upside for longs is that the runway is extended. Hence, the prospect of a capital raise at current levels is not probable.
For those who do not understand what is happening with TRXC, keep a close eye on it since IF you believe their technology is solid then this would be the time to load up. Otherwise you need to wait until more orders are placed and then buy at hopefully not much of a premium.
The SAME things will occur here and before then you will see at least $100M raised and $50M borrowed to fund through to the point where sales will START to take off assuming the hospitals adopt the platform. We are at least 2 years from that point and perhaps 3 years depending on the roll out plan. If sales are slower than planned then expect one big final dilution unless the company has lots of cash in the bank.
Design freeze now will accelerate FDA submission by a quarter but it probably means more minor submissions post approval. I support this move by management assuming the FDA will approve the current design since it moves the timeline forward although it may mean more costs to get these minor changes approved.
I wonder why you pumpers do not discuss such risks and for those who blindly follow you then be careful. I will say that the surgeon support gives me much optimism for the platform but do not kid yourselves into thinking the markets will reward these fellows with a billion dollar market cap any time soon, and particularly not when the company will be forced to raise capital.
If there is competition for the raise then longs might be happy. Perhaps a partnership would be the best strategy for Titan but who would partner with them? Intuitive - NOPE. J&J - NOPE.
Auris got a full valuation because they did NOT need to raise ANY cash. Titan is not in this situation and has burned investors over the years, so payback can be expected.
