I just got immediately bullish on PGRX for a couple reasons:
1. They have a plan to pay off their debt. Finally.
2. My guess is they have a rather large buyer lined up to soak up most of the shares in the public offering.
3. Frequently when folks announce beforehand a public offering, investors will drive the price North for about a month while the company awaits SEC approval for the share offering. My guess is that by the time they offer the shares, the price will be back above $2.00/share, and they will offer the shares at about $1.50.
4. Reserving the right to do a reverse split is, in my opinion, less about bringing the share price above $1.00 and more about bringing the share price above $5.00 for the sake of institutional buying.
All in all, I think the scenario is bullish and will yield, especially in the short term, a pop in the share price.
GLTAL.
