Biotransplant(BTRN) Message Board

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Biotech / Medical : Biotransplant(BTRN)

BTRN 35.34

0.0%

Nov 6 4:00 PM EST

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To: jayhawk969 who wrote (1148)	12/10/2001 8:41:52 PM
From: aknahow	of 1475

You are correct on the number of shares outstanding. At year end 2000, BTRN had about 11 million shares outstanding but with the Eligix acquisition about another 6 million were issued and a subsequent sale of about 3 million brought the total up. So while the new sale means as you posted 25% dilution, BTRN apparently will soon have 26 million shares outstanding compared to 11 million last year. Dilution generally refers to the simple concept that more shares are outstanding. It is a term used by some for stocks they don't like and not used for those they do. I have long argued that if a company raises more cash per share than the book value of the stock at time of issue, technically there is no dilution and that the new stockholders enhance, not dilute, the value of stock held by shareholders prior to the offer. (In short, I agree with you) <g> And actually the issuance of shares is of little importance compared to what the company is able do do with the money. Learned this the hard way as I passed on buying ICOS at $3 in a rights offering because the book value was only $1.6.

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