Earlier this month, BioSante Pharmaceuticals'
I guess not.
BioSante announced today that it is raising $45 million by selling 16 million shares at $3.00 a pop. That's a 17% increase in the share count at a 3% discount to yesterday's closing price, which certainly doesn't look like tide-us-over-until-we-get-a-deal-done money to me.
What have we learned from this? Sticking a for-sale sign on the front lawn isn't enough to find a buyer. It didn't work for Biogen Idec
As I said previously, companies that sell erectile dysfunction drugs -- Pfizer
We also learned that BioSante isn't the best market timer. Raising capital earlier this month when shares briefly touched $4.00 per share would have been a lot less costly for investors. Maybe "many, many" deals were in the works then and they all fell through. Or maybe management was hoping shares would go higher.
Welcome to the club.
Interested in small companies? Grab this free report from Motley Fool analysts: "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke