Dec. 10 at 8:26 AM
$DNLI The "Mechanics of the Deal" explained.
For those asking if the drop to ~
$17.50 is a buy, here is what’s happening under the hood of this
$200M offering:
The "Anchor" Price (
$17.50): Institutions agreed to pour
$200M at this specific price. For them, this is fair value. Buying here puts you at the same entry point as the Whales.
The "Pre-Funded" Signal: They aren't just selling stock; they are selling Pre-Funded Warrants.
Why? Because big funds (Smart Money) are hitting their regulatory ownership caps (9.99%) and literally asked for a vehicle to buy MORE than allowed.
Translation: Demand is massive.
The "Green Shoe" Defense: Underwriters have a 30-day option for more shares. If the price dips below
$17.50, they are incentivized to step in and stabilize.
The Setup:
Buy Zone:
$17.50 -
$17.80 (Co-investing with the funds).
The Risk: A high-volume break below
$17.00 = Broken deal.
The Reward: Positioning for the April PDUFA run-up with a cleaned-up balance sheet.
