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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: rickyc who wrote (29130)	8/13/1999 6:12:00 PM
From: Cacaito	Read Replies (1) \| Respond to of 32384

Ligand happens need cash to finance a lot of research and they have little money to do. 1. X-ceptor is a vehicle that will finance what ligand could not. 2. Ligand has the right to buy for about $80 millions the $20 millions Kevin KINGsella is bringing in. 3. Kevin Kinsella could lose his shirt, but he gets options to Ligand itself to cover his downside, and the minimun payment of 4 times his investment for the upside. If they developed good products and ligand could not afford to pay he could make even more. Of course Ligand will borrow money to get this products back. 4. Ligand is investing about $4 to $5 millions and therefore they own about 20% to 25% of X-ceptor success or failure, this probably is to give more confidence to Kevin K and his partners. 5. Kevin KINGsella is smart. He knows the downside is to own a chunk of Ligand with failure, and a sure huge chunk with success. 6. Ligand seems to be preparing to show earnings, and the new company money is investment, not expense?, and probably will create some immediate tax benefits (my understanding ), and separate books. Ligand has earnings, X-ceptor losses.