Excuse my ignorance, but what or who is K2?
Edit. After pondering for a moment, I suspect Kyösti Kakkonen
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But isn’t that still the backstop, the amount of money sought per the planned maximum number of new shares? Why is/would the maximum number of shares be ~20 million if it is excluded from the outset…
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Oh, come on. And the authorization to issue shares was made ages ago. It doesn’t mean that the authorization for 20 million shares is sized for this directed issue.
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Those approximately 19 million shares were already approved at the spring general meeting in April as the number of shares for additional financing. Book-building financing is like an auction to determine at what price institutional or large investors are willing to provide additional financing to the company; no price is locked in. The board then decides whether to approve and how many shares and at what price. Of course, when seeking additional financing of €10M, the worst-case scenario is 50 cents/share.
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However, it must be understood that the company is in a situation where 50c/share would be unfair to other shareholders. For credibility to be maintained with potential partners, the price will settle at 1.50-1.80. If it goes lower, then there’s real cause for concern.
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Good that funding is coming, but I feel cheated. Juho seemed to promise just a moment ago that there would be no more dilution needed. And now it’s diluting, again 10%-25% in one go. He should rather be quiet.
So, I don’t mind the additional funding, but the contradictory messages from the CEO.
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Quite a few good things just came out at once. Assuming this succeeds well. We’ll see soon enough. I’ll have to stay up all night again and press F5. Damn Juho…
So
-The sum is small, so the dilution is small. If it even happens 
it probably will, but one can always hope..
-It seems they genuinely believe the deal will materialize. Otherwise, more would have been sought at this stage.
-This removes a major short-term uncertainty factor. That is, once the short-term financing is in order. Room for growth has now been cleared. We started to rise nicely even after last year’s euro share issue debacle 
. Now we can start pricing the business case…
It’s also interesting to see who they go to. Foreign money is naturally sought after when it needs to be sought at night. Our local bankers in Finland will soon be trembling 
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As I understand it, the issue price will be announced tomorrow, along with the success of the offering. The issue price is determined quite simply by an auction method, which also shows at what price institutions are willing to subscribe for this share.
e. @Odetus
It’s good that funding is coming, but I feel cheated. Juho seemed to promise just a moment ago that there would be no more dilution. And now it’s diluting, once again by 10%-25% in one go. He should rather stay quiet.
This is indeed not known yet. I personally guess very little, if any, dilution compared to today’s closing price.
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One must think realistically and not just listen to one’s own wishes. This offering has been quite clear now, and the matter clearly explained here. This seems good to me, as long as the offering price is realized with a ‘normal’ discount. A realist couldn’t have hoped for anything better than this 
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It has already dropped 20% recently, and if it goes down to the lower limit I mentioned, i.e., €1.50, then there’s no need to worry. Then the financing will be in order and the background verified, so we can start negotiating a partner deal.
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It has not been promised, based on the latest interview where this was discussed, that there is no longer a need for dilution. It has been said that other methods are also in use. Nothing has been promised. The size of the offering was also discussed, around 10 million, but perhaps not even that would be needed. Well, it has now become clear that the 10M was needed, and with that, they will manage until summer and get the contracts sorted out!
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Hopefully the offering succeeds. I see this as a good solution, and if tomorrow the stock is in the red, it will likely quickly recover as the financial situation clarifies.
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Great news, even though it’s reflected as an incipient decline in the share price. Actually, nothing has gone badly except for the delay in partnering, but as Juho said, why partner now when there’s a better chance to get a 2-3 times better deal with better data (in April), which is quite soon. In the share price, it means the removal of uncertainty regarding Faron’s near future, depending on the data remaining good, and that’s how it looks to me at the moment. Not to mention the firm data coming at the end of the year, and before that, a meeting with the FDA. Towards spring.
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One should probably sleep at night, or at least lie on their back with eyes open. At 9 AM, an announcement will come out about whether more or less was sought. And with how little dilution. This is how it has gone before.
By the way, neighbor Pena said that when he was asked 2 weeks ago if he would participate in the offering if he got a 20% discount, he said yes, of course. He paid for them now, and lo and behold, indeed, the price was now 20% cheaper than 2 weeks ago. And he really got them from the bid side. Pena is truly an institution 
. I don’t know about Pena’s moves, but others have written in the buy/sell thread in recent days.
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How on earth can people talk about dilutions of up to 25% here when it’s simply not possible. At most, if 19,000,000 more shares are issued, the maximum dilution is 104,000,000 / (104,000,000 + 19,000,000), which is about 15%. Pure math just goes like this.
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Let’s partner up
- April
- May
- June
- July
- August
- September
- October
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äänestäjää
At the autumn R&D day, the company already had a need of roughly 10-15 million euros in mind, meaning plan B (not getting a partner in '24) was already considered then.
I think that before negotiations with candidates can progress, both excellent phase two study results and a wave of FDA’s magic wand are needed.
This is not an investment recommendation, but I do not intend to sell any shares at this stage, nor will I buy unless there’s absolute panic in the coming days. Then I might lightly add to my position.
I await spring with a quite calm mind.
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Let’s continue from here. If the dilution is at its maximum, i.e., 15%, and currently, from a market capitalization of €201M, €9.5M is cash, and after the offering, cash will be €19.5M, is it:
- the company’s new value €211M, which results in a per-share value of €1.71, or
- the company’s new value higher than above, because the cash is doubled and financing uncertainty is gone, or
- the company’s new value lower than above, because… something something dilution
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Juha Varis knows that the price is close to €1.72.
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