Potential, concept for basket financing of biotechs, development described in posted article. At the moment not being used to provide financing. The potential for financing is only in my imagination, and would be more complex, (prospectus would be required).
If the market accepts the present basket security it will be copied, and modifications will be made. Convinced one could be financing tool. Perhaps, two big well known ones with one or two small companies. Except big ones don't need or want financing. But this can be overcome by combo using outstanding stock of the big ones with new stock for the little one that is financing. Sorry, to be running off at the mouth but, this is something we may hear more of.
biz.yahoo.com
I understand this is a performance tracking security, so they don't need to invest in the companies, but only hedge the risk to assure ability to match plus guarantee return of principal. No matter, the concept, also being tested, is does the market want a small basket, compared to a mutual fund? If they do, the structure can be modified, IMO, to accomodate financing. |
