Miao expecting any refinancing to be highly dilutive

PTX stated in earning call that they initiated a 100 million dollar fundraising facility by selling new shares of common stock on the open market. Approx 65 million shares are left to issue, but the company will not earn the 100 mil at current share price. They will have to amend articles of incorporation to raise the total authorized share count (keep an eye on Maryland sec of state webpage) in order to sell enough shares to raise the needed capital. It is a shame that PTX had to resort to dumping its debt/liabilities onto its faithful shareholders. Ever wonder why each time PTX runs, it soon crashes again...because the company itself was dumping shares on everyone, killing each run.

The scary part is that according to the S3 filing, it is actually a total of $300 million equity offering and the $100 mil is just the beginning.

Miao has a history of joining companies, then initiates heavy dilution, running the share price to nearly nothing, then resort to reverse split last minute to avoid delisting. looks like thats the plan here too, keep dumping more shares on everyone until they get debt caught up. Remember Miao has been behind the scenes at PTX since May.

There is no hope for refincing the debt anymore. The bonds currently trade at such a discount with such high interest payments, that no institution in its right mind would want to buy back new full priced bonds with lower interest...think about it. Miao even confirmed it in a statement made in last 10Q...

"We can make no assurances that any refinancing or restructuring that we pursue will be successful....
although we believe that any refinancing or restructuring would be highly dilutive to our existing equity holders and certain debt holders."

"The issuance and sale of substantial amounts of common stock or the announcement that such issuances and sales may occur, could adversely affect the market price of our common stock"

 

This now makes sense as to why PTX cannot sustain any spike. Every time the stock prices rises, management sells off shares to raise capital. And thus stock price collapse. It hurts investors but the cash is needed for the reason you mention above. Sedor and crew are not playing games. They are making all the tough decisions they feel needed.

 

Why are you focusing in Miao and not what Sedor accomplished in previous negotiations? They will sell for at least 1.80 more likely higher. They have not immediate need to further dilute the shares since the next load payment is not due for a year from now. What is you agenda?

 

My agenda is to be an obsese, middle aged, balding, internet troll where I can feel somewhat important by posting on this site. I have no wife, girlfriend, and I am a virgin so this is really all I have.
I crave attention so I post here. Even negative attention is better than no attention