Humanigen Inc (HGENQ)

[Corundum]

To defend the $10,000 price point, it seems clear HGEN has been raising money to avoid using government money with strings attached. They could have settled for a Merck-type deal more in the $5,000 range, but chose not to.

To me, this signifies smart, tough management that refuses to be pushed around by the government. It's meeting its manufacturing requirements for an EUA by raising money to commit to contract manufacturers.

Sadly, they have done it by using the ATM approach, which has resulted in strange stock price action for the past two months, and has pissed off the investment bank community (JPM in particular) by raising money inexpensively, and not by using a fat-cat underwriting commission structure. I'm not saying they are completely wrong with this, but I think there are unanticipated consequences -- including weak hands now owning a chunk of stock, which may haunt us in the future, and may already be haunting us.