Can anyone tell me why the fuck Mankind which was trading at $2.60 yesterday decide to sell 2ndary IPO of 40 million shares (200 mil diluted outstanding most recent #s) + 30 million of warrants combined for $2? I get they are selling to their parent company but wtf is this shit.
Trending Content - Equity Research Forum
Career Resources
Because they had $2mm of cash and over $400mm of debt...
You missed the pnt. They were trading at $2.60 but their secondary IPO is at $2.00 per share...
Actually, even worse if you consider the intrinsic value of the warrants which is ~$0.35 per unit... Thats the cost of trying to raise money when you're a biotech company and demand is weak . Although they'll receive no proceeds from the other offering that went to the CEO's holdco, at least that portion was at $2.59 and he will be paying additionally for the warrants.
If you take into consideration that both deals combined sold 80mm shares and raised $187.35mm gross proceeds, the effective offering price per share is $2.34. Unconventional way of looking at it, but makes the capital raise as a whole more palatable from the issuer standpoint.
Quia error quia harum beatae sint eveniet. Laboriosam nesciunt voluptas minima qui numquam quisquam et. Deserunt libero sed unde dolor vitae et. Consequatur maxime rem at doloremque accusamus. Itaque perspiciatis magnam nesciunt natus aut et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...