Mast Therapeutics, Inc. (MSTX)

[Ecomike]

Actually this may have been a smart move that sets a floor price here. Until those units are sold, if they are sold, there has been no dilution or change in the float or OS, and the announcement here and now, sets a target floor for the retail price. They may have a few more cards up their sleeves, like blockbuster trial results PRs down the road, or maybe even a sale of one or part of one of the drugs rights in the pipeline, or JV deal. They may be planning another acquisition, and lining up cash ahead of time. Announcements of any of those could send the price way back up.

But better to get the cash they know they will need now, rather than latter from the looks of things.

One of my other longs did this recently, and the price dropped under the offer for weeks, only to rally back up, and double on other news, that later included news that they yanked the the new issue offer, with out issuing the shares!!!!

One thing I have learned here is to "expect the unexpected"!