My main concerns with Diversa were the going concern notification and T.Rowe Price's discontent over the purposed acquisition of Celunol Corp. With the major issue of insufficient funds now resolved, I feel more confident that the price issue will also conclude without much of a scene.
There appears to be two likely scenarios:
First, if Price can convince the other major holders and the board of directors that the deal was inappropriate from conception; the market will likely return DVSA's share price to where it was trading at prior to the announcement.
Second, if the board can provide sufficient evidence to Price and the other majors that the merger is in the best interest of the shareholders, the market will like wise reward DVSA a higher premium as it strengthens its position in the emerging cellulosic ethanol industry.
Even more importantly, the share offering is not contingent upon Diversa's pending merger with Celunol Corp. Ultimately this means that these well funded institutions believe Diversa will emerge a winner with or without the addition of Celunol.
Disclosure: Author is long DVSA
DVSA 1-yr chart: