The positive scenario assumes all 6 million shares are sold to LPC and LPC sells them to other institutions instead of just dumping them and of course these institutions hold for more than a Q or 2. Throw in existing 15% ownership and its a reasonably small leap from there. Maybe they finally secure the partnership they need by year end 2017.
The negative scenario says there have never been long term institutional investors to date in CYTX. That it may take to 2018 for a partnership to come to fruition. Year end 2017 still wont have FDA approval. There is risk to the size if the IDIS market for scleroderma. Debt still wont be solved as well as still running on a shoestring budget.
I'll take the under DOV just for fun and we will see in a little more than 13 months :)
Joncon63....I think BRiley's $5.75 price target it self would be wonders compared to how we have suffered. Remember many institutions wont buy a stock below $5 so getting there would be a positive in itself.
Why is everyone assuming Lincoln Park Capital will flip all of the shares they purchase from Cytori? Anything over 9.99% I get, but LPC is a big believer in the technology and at these prices why would they play for nickels and dimes? I have only one personal experience with LPC and they were investors, not flippers like Sabby.
Also, I do not believe Cytori will tap LPC for a few months. They have enough cash above the $5 million covenant to operate for a few months and that gives them time for a small BD deal or two. No telling what the price will be when cash is needed. What I like about this deal the most is the credibility of LPC and the structure, which permits Cytori to sell only enough shares to get them to the STAR data. If they did a full blown secondary as they have in recent years, they would have to sell all shares at one time and depress the market. Cytori has terrible shareholders. 85% individuals and 75% of them hate the stock and the management and have no faith left. The STAR data is what will bring in the institutional ownership in addition to LPC.
The following user(s) said Thank You: Joncon63, rodney.strongg
I totally agree they may hold the 9.99% max. I just believe Cytori will or should be selling more than that amount. Thus selling will have to happen to some respect.
Also agree LPC being US based adds some credibility.
As I commented in a earlier post...the IMPORTANT thing is we now know the path to see the STAR data.
Had a longer and perhaps better response but got timed out again and forgot to copy it.