Replies to post #84004 on Biotech Values

[wallstarb]

Most registered direct offerings are sold with warrants attached as a sweetner like SPPI's - SPPI was a PIPE and so is MNTA. the P in pipe refers to the PRIVATE nature in which it's marketed NOT to whether or not its registered or isn't. And yes if MNTA did an unregistered offering it would have come at a steeper discount. I think MNTA did pretty well sellign the offering above its major moving averages. I honestly think they got some real "investors" to take it down, and it is VERY positive long term.

Deals like SPPI did generally go to momentum funds and funds that flip or were net short into major spikes. Considering MNTA hasn't had a pump phase yet it's IMO a major coup that they got it out @ $10.75 without any sweetners (warrants)

[mouton29]

Secondary offering defined -- << A secondary offering (or part of an offering) is an offering of shares by existing shareholders (often insiders) rather than by the company itself. Sales of shares by the company itself—whether a PIPE, an underwritten offering, or a registered direct—are primary rather than secondary offerings.>>

There seem to be two definitions. Many people -- see investopedia and wikopedia and, I can tell you, at least some Wall Street corporate lawyers, use "secondary" offering to mean any offering after the "initial" public offering. Others use it as you say it should be used. When I hear the phrase used in my practice, I generally ask the corporate lawyer for clarification, e.g., I will say, do you mean, secondary, as opposed to a primary offering. A primary offering clearly means an offering by the company of its own shares. And frequently, they just mean, an offering other than an IPO.