Spectrum Pharmaceutecals Inc (SPPI)

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Spectrum prospectus to offer $150M in shares

Spectrum Pharmaceuticals files to offer $150M in shares
Apr. 5, 2019 6:29 PM ET|About: Spectrum Pharmaceuticals, ... (SPPI)|By: Jason Aycock, SA News Editor
Spectrum Pharmaceuticals (NASDAQ:SPPI) has filed a prospectus to offer $150M in shares, along with a mixed securities shelf.
The company intends to use proceeds for general purposes, including "research, development and clinical development costs to support in-development drug candidates, activities in connection with the launch of in-development drug candidates, including hiring and building inventory supply, making acquisitions of assets, businesses, companies or securities, capital expenditures and for working capital."
Authorized stock comes to 300M shares of common stock and 5M shares of preferred stock; as of April 2, there were 111.84M shares of common stock outstanding.
Sales agents are Cantor Fitzgerald, H.C. Wainwright and B. Riley FBR.
https://seekingalpha.com/news/3448860-spectrum-pharmaceuticals-files-offer-150m-shares?dr=1#email_link

I was wondering when they would get around to doing that after KG noted no more At The Market funds available during the 3rdQ 2017 CC

Based on strong revenues and effective management of our working capital, we ended the quarter with $139 million in cash and equivalents compared to $137 million in the previous quarter. In addition to the $139 million in cash on our June 30 balance sheet, after the end of the quarter, we utilized our ATM facility to raise approximately $24 million. These funds are not reflected in our Q2 cash balance. This now completes the aggregate amount available under that ATM facility. Since the issuance was completed after the end of the quarter, it will be reflected in next quarter's filings.

I was previously speculating that Spectrum won't do a financing till, at the earliest, after pozi top-line news comes out in the 4th Q

Looking at TGTX news, I see a big reason why TGTX had no compunction in providing interim data to (what appears to be) a pivotal study is they needed to do a financing IMHO. They released the data, Share Price goes up 40%, and TGTX does their financing a couple of days later. The need for financing is a constant battle w biotechs. With over 300M in the bank (Spectrum announced the Completion of the Sale of its Marketed Portfolio on Fri), Spectrum can more conservatively wait for top line data later this year. It makes no difference to them since they won’t be doing any financing in the near future. So in their eyes, if the SP goes up now it would be nice but the bottom line is for the SP to go up closer to pozi news. post 2536

Back in post 2449, in going through a DCF exercise of what pozi sales are worth now, I assumed they would need to sell another 10M plus shares

I started out assuming that SPPI will get to 120M shares outstanding before they won’t need financing from the equity markets anymore

So bottom line is they needed to do a shelf, the Q arises when will they be using their ATM. The earliest IMHO is after pozi topline in the 4th Q or some other piece of good news that would lift the share price.