May. 11 at 9:07 AM
$ALEC is entering a "death spiral." Following the total failure of its lead FTD program, the company is effectively a "zombie biotech" with nothing but early-stage assets. The real story is the
$125M ATM offering filed under the radar. Selling
$125M worth of stock at
$2.00 will flood the market with 60M+ new shares. With the
$2.00 psychological and regulatory support about to snap, the path of least resistance is heavily skewed to the downside. Short interest is likely to skyrocket as the market digests the magnitude of the dilution.