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Biotech / Medical : NNVC - NanoViricides, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: HardToFind who wrote (3363)	12/12/2014 6:03:44 PM
From: HardToFind	Read Replies (2) \| Respond to of 12871

The reason investors are annoyed when an equity offering goes out at a price lower than before is that the previous financing was presumably done to enable the company to achieve a new milestone that adds significant value. If the price is lower, presumably the previous infusion of the last financing was not well spent, or the endeavor was not well managed, etc. (i.e., it was a failure). That presumption isn't always true, but when it happens in the absence of an overall market or sector fall-off, management has some explaining to do. It is not necessarily the case that investors always expect the price of an early-stage biotech to remain above the last financing for the entire time between financings...although it is certainly desirable to keep the share price above the last financing. As long as the company is clearly headed toward reaching that significant value-adding milestone upon which the last financing was based, shareholders don't have a lot to complain to management about. What serious investor wants to change a management team that is clearly adding value to the business, just because the stock price went down (temporarily). If there is reason to believe that the business has been permanently and irreparably impaired by the actions of management, then yes, get a new management team or sell the business assets and go home. But why get rid of a good management team just because the market is fickle about your stock?