Welcome to the board LACYDY! I know you receiv
Post# of 148169
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Posted On: 09/18/2019 9:21:01 AM
Welcome to the board LACYDY!
I know you received some responses already, but wanted to add a little to them. NP announced at the shareholders meeting that he has signed a non-binding term sheet with $90M milestone payments and is expected to close within 6 weeks and includes 50% royalty of net sales, other company pays all launch costs. While this is technically dilution, it will not add to the outstanding shares or warrants. This will likely take a little while to close and depending on how the milestone payments are structured, may be a little while before we receive any cash.
To get to this point NP mentioned that he has/is lining up enough financing to get until the end of 2019. Based on history, this will be dilution via direct offering with Paulson......likely to be in the range of $.40/share + half a warrant. The reason everyone thinks that $.40 will finally be in the rear view mirror is these Paulson rounds have held the stock down as some of these investors simply churn their shares and collect as many warrants as possible to derisk their investment. i.e. buy 500,000 shares + 250,000 warrants for $200,000, sell 500,000 shares on the open market (supply exceeds demand depressing share price) to derisk and free up funds for the next Paulson round to acquire more warrants. Once these Paulson rounds are gone, the excess supply of share should dry up and allow the share price to increase.......add some big news to this formula and some gap ups are expected. IMO it should be some very important milestones achieved in the next few months that sparks some excitement in the stock.
I know you received some responses already, but wanted to add a little to them. NP announced at the shareholders meeting that he has signed a non-binding term sheet with $90M milestone payments and is expected to close within 6 weeks and includes 50% royalty of net sales, other company pays all launch costs. While this is technically dilution, it will not add to the outstanding shares or warrants. This will likely take a little while to close and depending on how the milestone payments are structured, may be a little while before we receive any cash.
To get to this point NP mentioned that he has/is lining up enough financing to get until the end of 2019. Based on history, this will be dilution via direct offering with Paulson......likely to be in the range of $.40/share + half a warrant. The reason everyone thinks that $.40 will finally be in the rear view mirror is these Paulson rounds have held the stock down as some of these investors simply churn their shares and collect as many warrants as possible to derisk their investment. i.e. buy 500,000 shares + 250,000 warrants for $200,000, sell 500,000 shares on the open market (supply exceeds demand depressing share price) to derisk and free up funds for the next Paulson round to acquire more warrants. Once these Paulson rounds are gone, the excess supply of share should dry up and allow the share price to increase.......add some big news to this formula and some gap ups are expected. IMO it should be some very important milestones achieved in the next few months that sparks some excitement in the stock.
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