Miljenko,
This filing reflects the ongoing distribution of the NXTR stock held by its largest shareholder to the partners of that shareholder. It doesn't really directly affect the company except insofar as one of the partners might have weaker hands than the original partnership. One of these partners could easily be the entity responsible for the large short position - they could have decided to sell ahead of the distribution and unwind later when they receive their stock.
This filing did also report the "net exercise" of a large warrant, which should mean around 700,000 more shares outstanding. (Instead of paying to exercise the 1 million share warrant with cash, they "paid" for it with 300,000 shares and ended up with a net 700,000 more shares.)
In general, when analyzing a biotech you have to watch out for the dilutive effects of warrants and options. If a company is making a profit, these are automatically reflected in the fully (or primary) diluted shares reported outstanding. However, if a company is making a loss, these dilutive options and warrants are NOT reflected in the fully diluted numbers, because doing so would have the effect of reducing the loss per share.
Personally, I wonder if NXTR isn't a takeover prospect given the large block held by Warburg and my gut feeling that some big pharms and 1st tier biotechs are going to be looking around for companies with significant new approvals to bolster their pipelines. (I have absolutely no evidence to support this, however.)
Peter |
