Humanigen Inc (HGENQ)

[Corundum]

A major "special" factor putting a lid on the price since December 30 has been their "unadvertised" stock sale through s shelf ATM (At-The-Market) offering of $100 million of stock. If they were targeting to complete by the end of February, that meant 40 selling days, or $2.5 million a day of stock. If full enrollment drifted a little late (which it seemed to do), then originally they may have been targeting 30 selling days until mid-February, or $3.3 million shares a day. Since the stock price was about $17.50 when they started, this implies perhaps 140,000 to 200,000 shares a day expected to be sold -- which is a wicked overhang for this stock. That's enough to trigger computer algo trading into thinking the stock is "weak", with computer-driven sales also driving the stock down in the face of good news.

Supposedly "These transactions do not involve any special selling efforts (i.e., no road show or other solicitation) or an amount of the issuer’s securities that would be considered significant relative to that issuer’s public float or daily trading volume. Similarly, the purchasing broker does not use any special marketing efforts." (generic quote about ATM's)

I think this may become a textbook case of mismanaging a fund raising by not understanding what could happen.