They have to raise money, somehow and they have no partners to help them financially. They can't borrow money from banks a this stage and PE would want a bigger piece of the company than the board is willing to give up (I'm assuming). Sucks, but that's the reality of small biotech. Obviously, if the stock would have blown up, they would have sold a couple million shares at $100, but that didn't happen, so they are doing the what they have to do, which is basically the exact opposite of that.
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