100% correct, upfront money from another company will be for solely Phase 2 and the manufacturing of the drug. Does mean regardless there will need to be a raise at some point but it will come down to how much dilution will occur.
For me though its two key points:
1.) T/O needs to have an offer to accept. We still don't even know if we have one. Once tabled you would think there would still be some time for negotiations around turns. Hence by believe that an announcement around such offers would in itself help get the SP in the money.
2.) Yes it will help, but from T/Os persepective and I'm sure as everybody else's, if the MC triples in value from the deal, then the dilution in the CR won't be as sever anyway. I would say in this case though, the CR would come very soon after the announcement to take advantage of the highest VWAP, which would be when its still pumping a few days after news.
Ideal situation, announcement in 28 tradings days. - Options in money and raise will be for a small amount at an increased SP.
But as mentioned there are plenty of ways for this to play out.
1AD Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
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