Digging into the financials suggest that the burn per quarter looks to be about $25-30 Million.
After doing some reading, it doesn't seem like there was a lot of shorts relative to the Outstanding shares, that's why I don't see a quick bounce happening.
If there was a large amount of shorts, I probably would expect them to be very happy with a 85% drop .... so I would buy ahead of them taking their gains.
Not to say this can't bounce, I just don't see the reason as to why at high $2s
If it goes to low $2s, I might be more inclined.
If this can break $3.25, it might be off to the races (maybe $4 or $5?) but given how short of funds they are (may 2 or 3 quarters left), I don't see a quick bounce higher.
Would love to be wrong for the sake of long-time investors though.
Sadly, this stock just highlights why holding long through FDA events is not a good idea. The stock was not likely to have opened up 600% on good news. It may have got there, but it wasn't going to open there immediately. So, a horrible risk-reward ratio to hold long through it.
Sure, play the stock after or leading up to the event .... but don't hold through it.