I never meant to suggest this would be at close to current prices. If we're well into double digits and they were offered a few hundred million dollars for tens of millions of shares, it may be hard to say no. By that time I don't believe naked shorts will be a serious problem.
I hate to say it, but IMGN all to often sold in such offerings shortly before they knew good news was going to be announced. The institutional buyers not only got shares at a slightly discounted price, they also got a nice sized gain shortly thereafter. IMGN liked having 80% or greater Institutional ownership and they fully backed the company on the buyout, while many individual investors like myself opposed it. Once a company grows into a profit making operation, or headed that way, individual investors have little say about how votes go, even 20 to 30% ownership by Institutions or a BP partner almost assures any vote they pursue to pass.
It will be interesting to learn what we're to vote on at an Annual Meeting. I don't think it will be announced until we have an approval or other positive news, but when it is, if they're telling us they're looking to pursue an equity partnership with a BP, at the same time they should be asking us to authorize more shares as they'll need them for such a partnership. It may be too early for such an announcement if LP's still looking for at least say $20 a share for such an agreement. I suspect she might be willing to do a tiny percentage at $10 which could be achievable once we're at $5 or more.
$5 will bring in many Institutions and permit a move to the exchange of LP's choice. Will it happen shortly after approval, or require something more, it's anyone's guess. At $5 or more I don't know that LP may not be eager to offer enough stock to bring in say $100 million to be in a better financial position to initiate new trials as well as gaining further regulatory approvals. It will take awhile for income from sales to build, having cash on hand is not a bad idea rather than trickling out some shares almost every day. I respect LP's ability with money, I feel confident that what she does will benefit all of us.
Gary
