$100 million, most likely institutional investors, is a large investment into a small market cap. I think mostly institutions because we asked to participate and could not. We have participated in almost every financing round since 2016.
VTGN has 4 potential blockbuster drugs, and other indications. Typically bringing a blockbuster drug through trials cost north of $1 billion per drug. VTGN PH94 is phase 3 ready and most likely will cost less than $40 mil to complete the phase 3. This drug has multi billion dollar annual sales potential.
Obviously VTGN is a big risk/reward biotech play. One of the problems they had is always being undercapitalized. This hurts them with developing trials and negotiating with potential partners.
This funding has changed the game. And it looks like much of this funding is locked up. Reading into it it states that conversions cannot be done unless the Company recapitalizes. My guess are these are long term investors.
Vtgn has for the most pert been paper losses for us until now. Big paper losses where money could have been used elsewhere with better returns. But if one of these drugs in the depression/ anxiety space hits this will be a big winner.
These guys told me about a stock 2 years ago with a similar $50 mil market cap that was also in the depression space, it now has a $3 billion plus market cap.
Go back and read the vtgn press releases. Management did an excellent job at securing the 2 addional potential blockbusters.
I guess fully diluted there will be 200mil shares out, but that is not right now, it is in the future and would be fully diluted including Company option plans.
I doubt anyone would put $100 million in VTGN unless they had a hard look at the data regarding these drugs.
Good luck.
