Bill, it is not the "standard" floorless, in that the company can at anytime say, "WE do not want you to buy stock at these prices", or the company can set a minimum. Yet, if the company needs money and the company is not generating cash anytime soon, it is in the interest of Palladin (since I believe they have an interest in the new funding entity) to see the price go down at least over the short term, each time they sense the company will need another injection of funds. Since the Paladdin group (and their investors) have a sizeable stake in IMMU, I doubt we will see EXSO and CTYS like catastrophes, yet, by bringing the stock under $1 they can get three times as much stock as they can now. They now very well what are the future cash requirement before IMMU turns profitable, they will do what they can to get as many shares as they can for their $30 MM. If IMMU needs a $10 MM injection of funds, they will not be in a posityion of saying, "wait until we get the stock back to 3 or 4, they'll have to sell them the stock when they need the money.
Of course, IMMU might be able to create a "news releases campaign" to create some strength in the stock (prior to their selling stock to the group), but to the extent they do, I would not be surprised if the group would not short against the block into such strenght.
IMHO IMMU is facing some very tough time, and the low just above 3, may be yielding before too long. I do not know if we will get to the sub 1 territory, but it sure looks to me as if a price between 1 and 2 will be in the cards before the middle of the year.
I am still staying away from this one.
Zeev |
