Bob, short interest was up 20% to 2,251,591 compared to 1,870,296. I see that some think the group involved in the c.v.p. were investors and that their sale of XOMA stock means something. The entire intent of theses deals is to sell the stock that will be received. The wording of the contracts, at times, even stipulates, that conversion must occur before stipulated dates are reached. So IMO it was clear there is no intent to hold in this type of deal. The shorting also occurs prior to conversion. Registration is needed and called for in the contracts, at the expense of the company issuing the c.v.p. in order to be able to deliver the common stock received to cover the short position.
Why does the short position not change much during a reporting period? Much of the transaction, selling short and covering, probably occurs during the same reporting period. None of the above means I like the c.v.p. deals. But as posted before the idea of giving 805 of the potential future income to a large pharma in exchange for financing research and trials is not attractive either. |
