Athersys Inc (ATHXQ)

[oniwlmh]

DD... I'm currently doing my DD on this stock, and there is one issue that concerns me: (from the 10-Q)
"During the quarter ended June 30, 2013, we sold 2,075,000 shares to Aspire Capital at an average price of $1.85 per share, and during the six-month period ended June 30, 2013, we sold 3,398,305 shares to Aspire Capital at an average price of $1.73 per share. From its inception through August 1, 2013, we have issued 5,064,972 shares and received aggregate gross proceeds of approximately $8.4 million under the equity purchase agreement."
Aspire Capital owns less than 10% of the company, so they don't have to file their trades. They are guaranteed to receive shares of the stock at a discount to market value: (also from the 10-Q)
"Under the agreement, we have the right to sell shares, subject to certain volume limitations and a minimum floor price, at a modest discount to the prevailing market price."
Aspire Capital can just dump these shares as soon as they get them, and make $$.
The company had $18.9 million at the end of June 30th, and is losing ~6 million a QTR. It looks like they are going to have to continue selling large numbers of shares to Aspire Capital, which is going to place a ceiling on the SP if Aspire Capital is turning around and selling these. Any thoughts?