Feb. 3 at 9:30 PM
$SGMO Now I see this latest investor is likely Armistice, so I feel I must dial back the bullish vibe from my earlier post. They apparently have a track record of doing these warrant deals for small, cash-strapped bios. Not sure the "sophisticated co-investor risking big money for success" thesis holds up as well with them: They arguably just aren't so good at this warrant game ... see WSJ article...
"Over time, the fund accumulated masses of warrants tied to the value of underlying biotech stocks, an even more volatile investment. Armistice’s warrant holdings jumped at the end of 2023 to about
$466 million, from
$1.2 million at the end of 2022, according to documents viewed by the Journal. The firm used models to price these positions since there wasn’t an active market for them." I am back to neutral, but note we have more runway at least albeit with that comes ultimately over 400M shares outstanding probably.
https://www.wsj.com/finance/investing/armistice-capital-hedge-fund-struggle-7d713805?st=vnGDTZ&reflink=desktopwebshare_permalink
