Bernie, I did see the 8.9% of outstanding shares in the AGN filing, and I can come up with about 3.9 million shares, so that number may be correct. I did dig out a bit more info on AGN's purchases and amounts. As I suspected the price paid initially was close to the IPO price (and 3/4 of the stock was class B, so they wouldn't get the 1.33 conversion rate when A converted to B).
The initial joint venture sale was for 1,353,125 shares at $11.08. I assume that this was divided in a 3/1 ratio between class B and A. AGN also bought 630,929 shares of LGNDA as part of the IPO (priced at $11). They also had a warrant to purchase an additional 433,000 shares of LGNDA which they exercised for $4.0 million. For their class A shares they would have received 1.33 shares of class B, so that would have given them about 462,000 more shares, bringing the total of class B (LGND) shares to about 2.9 million. However, the cost for most of this stock (bought in 1992 and 1993) was $8-$9.
The cheap stock came from the $6.0 million (just under 1 million shares) bought for just over $6 in conjunction with the creation of ALRT in 1995. It could have been the sale of this stock that produced the $5.5 million pretax profit.
At current price levels, additional sales would generate capital, but not as much profit as the 1 million shares of the stock bought at $6. |
