Replies to post #47049 on Biotech Values

[rkcrules2001]

Dew -- DNDN insiders

My last post on this. Promise. Period.

<< legitimate companies and legitimate investment banks do not execute public offerings that are close in time to major open-market sales by the company’s executive officers.>>

Fine, thanks.

So, five weeks transpired between Gold's sale and the non-approval. And those five weeks were more like five months in terms of the market action, and the inconsequence, of Gold's sale. OK, how long would they have had to wait?

<<Moreover, your argument that DNDN did not get off a public offering because they were “not prepared” does not hold water. DNDN had an active SEC shelf registration (and still does); the whole point of having an active shelf registration is that a company can execute a public offering immediately with no SEC scrutiny.>>

I may have used the words "not prepared" somehwere, although I don't recall it off hand. What I did just say was that I tend to think they didn't raise funds because "they didn't think they needed to, and/or were too incompetent to put a decent transaction together in the interim between AC and May 8."

I've never done a private placement, but I assume it takes more than the absence of SEC scrutiny. It also takes a buyer willing to pay what you think your company deserves. And perhaps either DNDN didn't try, or couldn't find anyone willing to pay what they wanted.

Contrasted with your view (I think?), which is that Gold knew a non-aproval was likely, and he chose to sell a small percentage of his holdings and forgo the (relative) easy funding money available to DNDN post 3/29.

As I just told PGS, I find it interesting that folks who are so skeptical of complicated answers and consipracy theories on other issues readily impute devious motivations on Gold's sale.

I continue to lean towards the idea that if he really thought non-approval was likely he would have either sold more personally (if he is really simply a crook), or he would have used every shelf share for which he could find a buyer.

[Jonathan Robinson]

I do wonder why he did not do an issuance comprised of some selling shareholder shares (his) and new shares. That is done all the time. I guess he would have gotten less proceeds if done this way, and if that is the reason he did not do it this way, then he is worse than we think.

And Dew, this does happen all the time and given the massive trading volumes, this could easily have gotten away. The stock would likely have traded several points lower however.

Jon