Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 199.07

-3.4%

3:59 PM EST

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To: B.D. who wrote (27154)	1/4/1999 7:46:00 PM
From: Exacctnt	Read Replies (2) of 32384

B.D. <<What would be the benefit of exercising at this point, versus later when (hopefully) the warrants are worth double-digits?>> It is interesting that according to the press release, Ligand received $12.5M in the exercise of 2.27 million shares. That provides an exercise price at approx. $5.51 per share. That compares to the warrants stated exercise price of $7.12. It appears that a deal was made to allow these "institutions" to exercise at a lower price, which in turn, provides funds to Ligand. From the release, "Ligand has agreed to pay a cost of money incentive to the investors for the early exercise of these warrants." The cost of money incentive appears to be the difference between $7.12 and $5.51 or around $1.61 per share. Seems to me to be very generous deal for those institutions. The question to be answered, is Ligand desperate for cash? Kind of hard to believe after the Elan deal. Regards, Bob

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