Well they do apparently have an agreement with a mysterious "major international bank:"
SuperGen Receives $36 Million In Common Stock Financing Commitment From a Major International Bank
Deal Does Not Involve Warrants Or Resets
SAN RAMON, CA (November 24, 1998) -- SuperGen, Inc. (Nasdaq: SUPG & SUPGW), a pharmaceutical company, today announced that it has secured a $36 million common stock equity line with a major international bank. Under the terms of the equity line, which does not involve warrants or resets, SuperGen may receive up to $36 million in cash in exchange for SuperGen common stock at upward escalating threshold prices.
They've never disclosed the identity of the bank, and at a quick glance I didn't see any mention of this agreement in their 10K/10Q, which seems strange.
They did sell some common at a discount in 1998, and they have a $20m shelf registration that is current. (Unusual for a company this size).
I regard selling common to institutions at a small discount as fairly benign. I'd prefer if it was offered to all shareholders, but I guess this would drive up the transaction costs.
They also seem to have a strong network of investors, like the Oracle connection.
Bottom line is that they seem to be able to come up with money at reasonable cost in dilution, avoiding nasty convertibles and expensive partnerships with big pharma.
Peter |
