Cannell came on board to Sesen in Aug 2018. So if you are referring to anything before that, you are gonna have to blame someone else.
Most startup biotechs dilute,dilute then RS and start over. You find me a small biotech past phase II with a drug that has a low float of 50 million or less and it has probably had a reverse split.
Sesen is not out of the ordinary when it comes to that.
Last summer when the outstanding shares were at 75 million, they announced a reverse split to get back above a dollar, in that announcement Cannell commented to the fact that being barely above a dollar would not allow the offering of 25 million more shares that was in the plan, more of a cushion was needed. This was clearly stated in the reasoning for a Reverse Split. The stock price went over a dollar for the required time period, the delisting notification was pulled and the reverse was cancelled immediately, they did not do the offering immediately and kill the stock price to force the reverse, which they easily could have done. THAT would have been slimy.
They instead allowed the stock price to rise then issued the 25 million that they needed . They reserved stock for future employee incentives which is not out of the ordinary. They re-organized their warrants and started an ATM in order to capitalize incrementally on stock price.
Most shareholders don't understand the simple fact that the stock we buy on the exchanges is stock that was already sold before by the company to raise money. We may support the share price and thus give a valuation but our buying of stock does nothing for the company directly. Yet many expect a company to I guess raise money magically.
Sesen needs to start a manufacturing and distribution chain. Guess what ? That will cost a lot of money that they do not have and will need to raise.
For myself, I see the need and potential of Vicinium not just for Bladder Cancer but for all the other cancers with EPcam expression. My bet is that big Biopharms also see it and one will hopefully buy them out before the capital raises are necessary.
Jmho
