We've seen this before but its even worse. Warrants immediately exercisable... Think Sabby is a buyer?
08:35 AM EDT, 05/03/2016 (MT Newswires) -- Neuralstem(CUR) , a developer of central nervous system therapies based on its neural stem cell technology, Tuesday reported it priced an offering of 20 million share at $0.40, and also 20 million warrants at $0.40 per share, for a gross capital raise of $8 million. The warrants are immediately exercisable and expire on the fifth anniversary of the date of issuance. The shares of common stock and warrants are immediately separable and will be issued separately.
Neuralstem (CUR) shares trade down 38.9% pre-bell to $0.36, below a 52-week trading range of $0.52 to $2.37.
The offering is expected to close on May 6
Neuralstem (CUR) intends to use proceeds from the offering to fund regulatory, pre-clinical and clinical activities and general corporate purposes.
I went to the Circus with my grandson on Saturday. It was the last weekend for the Elephants since PETA has waged a successful war that has guaranteed that future generations will only be able to read about what a circus was. In any event it brings to mind PT Barnums famous quote "there is a sucker born every minute" . Another stem cell company selling out its shareholders in order to keep their paychecks coming. The world is a cruel place.
CUR is a decent percent of my portfolio. Did not think they would have to do a deal at these prices and warrants to boot.
Fact is sector is still being held down (but still being financed) No big deals in sector announced for ever it seems.
I always believed big money needs cheap shares before they start to promote and that's what has been going on here.
Every one of these reg med companies are in the same boat.
And Abvive just paid 5.8 billion for a non public stem cell cancer therapy company??
I always believed big money needs cheap shares before they start to promote and that's what has been going on here
It's the chicken or the egg - does capital need low prices in order to invest so outcomes can be attained - or will outcomes create an environment where capital will flow chasing potential eps?
In any event the share prices are cheap. No one has proven significant efficacy to drive them and there are no investors willing to gamble on Cytori's pipeline. It looks as though the attempt to inflate the pps before the R/S has failed. I am afraid there is big trouble coming in the near future but I don't know of any way to deal with it except by walking away. I can't bring myself to do that. I don't know why. I guess it doesn't matter.