Biotech Values

[mouton29]

<<Busted financing deals involving well-known underwriters do happen, but not very often.>>

It is a firm underwriting, so the underwriters are, subject to satisfaction standard conditions, obligated to buy (at $15.98 in this case). In busted deals, what do the underwriters argue, that the company has breached its reps or that one of the other closing conditions has not been met?