W. Damberg, I don't know if Katz made a sacrifice or not in selling
1/3 of his shares at a premium. I wonder though if HMED gets control, if Katz will get options or shares granted to him to replace the
ones he sold.
The board can't be called unfriendly since in TWO previous times,
they have extended his warrants.
If Katz would go ahead with a more conventional deal, and if this
really turns out to be a great drug like we hope, then Lidak would
see a large upfront payment and large royalties, plenty to fund his
research. Plus, if some went down to the shareholders, the stock
price would jump, and he could raise money that way too(2ndary
offering).
Now as far as this being nondilutive, I doubt it. I can name you
companies that claimed nondilutive financing that absolutely blew
away the shareholder. Who won? The financier. To me, nondilutive
is when a bond is issued. In this case, we give away the company.
By the way, it's pennivir. |
