The ATM Beast of Baluchistan in the room

[cheng_ho]

So, the shorts think GERN is going to succeed, their covering has been the main force holding up the stock price since Dec 2020.

But the CEO doesn't agree... he just keeps selling ATM shares near 52-week lows, according to the last report.

If Phase 3 data is as good as Phase 2, why in the world is he dumping shares, instead of just waiting for the Phase 3 data so he could sell over $5?

This is an issue similar to when the General Counsel and a director dumped all their shares in 2018. Are we going to stick with confirmation bias again and ignore another major anomaly?

[biopearl123]

Cheng, you have no way to know that the price suppression is due to ATM sales. End of the year tax selling, portfolio balancing and general disinterest could explained the current stock price. bp

[Zhears]

Can you link to any proof that they have been selling?

The ATM has been worrying me as well, but I was assuming it was a poison pill to deter a buyout.

[kmall]

Cheng-ho also claimed here on Imetelchat that the employees at Geron don't work. From "We could have skimped and watched our pennies, but......":

"And the non-working Geron "staff" remain in Foster City. Biotechs that brag about not watching pennies, while selling ATM shares for pennies, aren't looking out for their investors."

This claim was posted with ZERO proof of any evidence to back it up, regarding the "non-working staff."

One of the 3 rules of this forum:

-Back up claims with evidence/reasoning/sources (posting links is allowed)

By allowing posts to make baseless claims it lowers the integrity and credibility of this forum.

BTW - I'm still waiting for Cheng-ho to reply to my rebuttal about the "non-working Geron staff."

I'm not holding my breath. -Kmall

[Ryan]

I agree, he should definitely be kicked off of this board, based on this drivel alone. But of course also many other posts with false implications as well as straight out falsehoods.

The company sold shares (At The Market) in order to raise funds to ensure Phase III MDS could be fully funded through completion, period.

[Zhears]

Ryan, since the last dilution was announced and the share price dived last year, what evidence has been seen that those shares have actually been sold?

[mistergern]

Cheng-ho,

Check out the SPDR S&P Biotech ETF (XBI) index fund - how do you explain Geron outperforming this index fund over the past year.

Thanks in advance.

MG

[Hoosier Investor]

Below info on ATM sales is taken directly from (p. 19) Geron's 10-Q filed on 11/9/2021.

5. STOCKHOLDERS’ EQUITY
At Market Issuance Sales Agreement
On September 4, 2020, we entered the At Market Issuance Sales Agreement with B. Riley Securities, Inc., or the 2020 Sales Agreement, pursuant to which we may elect to issue and sell shares of our common stock having an aggregate offering price of up to $100,000,000 in such quantities and on such minimum price terms as we set from time to time through B. Riley Securities, Inc., or B. Riley Securities, as our sales agent. We pay B. Riley Securities an aggregate commission rate equal to up to 3.0% of the gross proceeds of the sales price per share for common stock sold through B. Riley Securities under the 2020 Sales Agreement. For the three months ended March 31, 2021, we sold an aggregate of 7,948,505 shares of our common stock pursuant to the 2020 Sales Agreement, resulting in net cash proceeds to us of approximately $16,234,000, after deducting sales commissions and other offering expenses payable by us. No sales were made during the three months ended June 30, 2021 or September 30, 2021. Approximately $83,000,000 of our common stock remained available for issuance under the 2020 Sales Agreement as of September 30, 2021. The 2020 Sales Agreement will expire upon the earlier of: (a) the sale of all common stock subject to the 2020 Sales Agreement, or (b) September 4, 2023.

6. SUBSEQUENT EVENT
In October and November 2021, we sold an aggregate of 2,611,173 shares of our common stock pursuant to the 2020 Sales Agreement, resulting in net cash proceeds to us of approximately $4,132,000 after deducting sales commissions and estimated offering expenses payable by us. For further discussion of the 2020 Sales Agreement, see Note 5 on Stockholders’ Equity

[biopearl123]

HI, thanks for the clarification. bp

[Zhears]

Thanks for providing that, much appreciated.

Possibly still 83,000,000 shares outstanding, ready to be sold whenever they see fit. I think this is the main reason the share price is still suppressed, after all the conferences and investor event.
Dilution is expected in companies like this, but this is hanging there and probably putting people off. Nothing we can do about it of course, I just wanted some clarity.

Thanks

[Ryan]

Ryan, since the last dilution was announced and the share price dived last year, what evidence has been seen that those shares have actually been sold?

This is the sale I was referring to.