This actually smells like existing shareholders (the top layers - FMR, T Rowe Price, etc.) were blindsided by this and decided to just dump their massive holdings in the company. If Morrissey had lied to these guys consistently about no need to cash, etc., and then goes out and pull this shit, it wouldn't surprise me to see large investors bailing.
The way the stock is trading, its either (1) large investors saying screw these clowns, I'm out, or (2) illegally shorting by participants of the convertible, into the placement.
Either way, someone messed up big time here - and it's likely bankers overpromising, and a brainless CEO Morrissey getting taken advantage of.
Either way, this company is about to have a capital structure among the worst of any developmental stage biotech in the USA after this deal.
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