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Biotech / Medical : Ligand (LGND) Breakout!
LGND 191.68-3.3%Feb 5 3:59 PM EST
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To: celeryroot.com who wrote (7835)9/27/1997 5:48:00 PM
From: Vector1   of 32384
 
<<What is bothering me is why Ligand doesn't do a private placement , if(big if) they are going to use some stock for buy back. Surely they could do the placement at a premium to current stock price and put the shares into the hands of someone with a minimum 1 year lockout. >>
Celery, no question they could do a PP. Frankly a convertible preferred at a 25% premium to the market with a 50%-75% premium forced call would make a lot of sense. Assuming they are well advised I would infer the following from thier actions:
1. They expect to sign a partnership deal with a major pharma over the next week or so which provides them with the cash to do the buyback. The reg statement gives them the flexibility to issue shares if the stock runs up bigtime. If the market is ripe it is generally wise for a development stage biotech to horde some extra cash for a rainy day.

2. They expect to announce additional clinical results over the nezt few weeks which will drive the stock price and do not want to price a private placement off of the current market price.

Something is up IMHO. A staight offering without additional news would be foolish. I have also been surprised by the bullishness of the comments that have been attributed to Susan Atkins and Robinson. They are clearly feeling thier oats. Lets hope that doesn't translate into unhealthy arrogance.
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