An entirely predictable and orderly decline in pps based upon the reality of 20M+ new shares, many of them hitting the market, so that the investors can begin profiting, and the reality of the dilution associated therewith.
Do not, however, overlook the active and capable communications department at xxii, who have proven that they know how to stockpile and release intriguing information in a manner intended to blunt the effects of perceived negativity and in a manner designed to stimulate the interest of existing investors with dry powder, and new investors, as well.
Had BAT exercised, the offering would not have been necessary IMHO, and it is becoming clearer to me that the company knew for some time, despite representations to the contrary that BAT was not going to exercise and arrangements for the deal were well underway.
We have to play the hand we've been dealt and really nothing changes about the reasons we invested here in the first place, other than a reduction in confidence by virtue of BAT's rejection and our perception of an awareness by management that a potential deal with big tobacco could be much farther away than had originally been hoped.