Biotech Values

[ronpopeil]

i think the shelf offering provides the company with a nice cash infusion if and when they decide to execute on it. you can never have too much money, especially in the bio/pharma area. i believe a shelf just gives them the ability to sell shares, it not does automatically mean they are doing it right away so no dilution as of now. at todays prices, if they actually did it all at once, would mean around 14 millio shares which isn't terrible. i like companies to have a to of cash on hand. if they get fda approval soon and the price shoots up, then dilution will be quite minimal. perhaps the shelf offering is just in anticipation of getting fda approval so when it happens, they are prepared to raise more cash