Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

Re: Dilution /continued upside

I retract my statement in #msg-176761262 that the increased negotiating leverage from a capital raise might be enough of a benefit to offset the dilution.

Assuming exercise of the underwriter’s option, ENTA is selling 7.48M shares and will receive approximately $70M in proceeds after fees (https://ir.enanta.com/news-releases/news-release-details/enanta-pharmaceuticals-announces-pricing-upsized-public-offering ). On a fully-diluted basis, the new 7.48M shares expand the share count by 26.8% (#msg-176567850). This is simply a boneheaded deal, IMO.

I'm still going to hold all of my shares for the reason mentioned in #msg-176756522. Even with the dilution, the upside continues to be colossal.