The rate of dilution raises a huge red flag.
When BAT pulled the plug I knew the writing was on the wall for something like this.
If you can't convince BAT over a four year period that your prospects are even better than when they invested initially, despite all the fluff they dish to us shareholders, then things are not quite as promising or as ripe as they are being portrayed.
The BAT rejection raises a red flag for other potential big tobacco partners, and certainly if someone else pursued a partnership or deal, why would they want to offer a penny more than the BAT option exercise would have cost??
They will offer less and want more, because the BAT rejection sets the bar for value, for the time being IMHO.
Thus our leadership senses the very real possibility that they're going have to go this alone, without an infusion of capital from big tobacco or anyone else, for that matter, and they know that all future plans, including FDA approval of anything, can take years and years and years.
Wherefore, tearing off the bandage while the valuation is artificially high with the recent run-up, and raising this significant additional sum along with the unfortunate dilution that has accompanied all these fund raising measures. BTW, look for management's compensation to continue to increase and insiders continuing to exercise and sell.
The deck remains stacked against us and we, too, need to be thinking about constantly taking profits.
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