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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?


To: Biomaven who wrote (6930)6/3/2003 11:05:09 AM
From: Rocky9  Read Replies (1) | Respond to of 10280
 
If they decide to do more financing, I hope that they do a straight equity offering. We have now seen the problem with using convertible debt for biotech companies. The cash is gone (used for r&d) and the stock is dependent on the FDA. For a 20-40% premium for the conversion right, I think a straight equity is a quantum leap in safety. Plus there is no debt cost. Of course, it requires a willing set of buyers, which may or may not be available.