SOL said ..."Why aren't folks "in the know" flocking to buy the stock, including hedge funds, vc's, private equity, etc. Why did they have to resort to raising funds with Sabby?"
Once again, you're slinging mud and making false accusations that simply aren't applicable.
First of all, Sabby IS a "private equity firm"...so that dispels your first false accusation.
Secondly, I've seen a lot of Private Placement deals over the years. Typically, the company must offer their shares 10% - 35% below market price in order to attract investment firms. The PP with Sabby was structured at $2.49/share which was 10% ABOVE the market price!!!
And the warrants were priced $1.30 per share ABOVE the market price. So they aren't worth anything until the share price reaches $3.50+ per share.
In my opinion, this was an excellent deal for APDN. Whoever was criticizing this deal simply does't know what a PP usually looks like. The only reason the shares are depressed right now is because Sabby is selling their shares at loss to recoup part of their equity (which is typical); and will hold onto their warrants to sell them for a profit when the price goes above $3.50 over the next three years.
It's obvious that Sabby has a lot of confidence in APDN's future to have paid $2.49/share for 2,272,727 shares when the current price was $2.20. And accept a strike price of $1.30 ABOVE the market for the warrants.
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On November 2, 2016, we entered into a securities purchase agreement (“Purchase Agreement”) with Sabby Healthcare Master Fund, Ltd. and Sabby Volatility Master Fund, Ltd. (collectively, “Selling Securityholders”). Pursuant to the Purchase Agreement, the Selling Securityholders agreed to purchase, in a private placement (the “Private Placement”), 2,272,727 shares of our Common Stock, and Warrants to purchase 2,272,727 shares of Common Stock. Each Warrant will be exercisable for one share of our Common Stock and will have the same terms as our existing publicly traded warrants that are currently listed on The NASDAQ Capital Market under the symbol “APDNW”, with an exercise price of $3.50 and an expiration date of November 20, 2019. The aggregate gross proceeds of the Private Placement were approximately $5.0 million before deducting the placement agents’ fee and other placement expenses. The price per share of Common Stock was $2.49 and the price per Warrant was $.01. The Private Placement closed on November 7, 2016 (the “Closing Date”).
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