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Biotech / Medical : Xenova (XNVA) -- Ignore unavailable to you. Want to Upgrade?

To: billgates5043 who wrote (143)	8/5/2005 3:21:56 PM
From: Robohogs	Read Replies (1) \| Respond to of 173

Wrong wrong wrong. There is nothing that says how they are going to capitalize company going forward. It could be all debt for all you know and then no one loses ahead of these notes. If everyone took the notes, then you end up with no equity in structure except cash they put in for development on top of the debt they have already put in. They have no commitment to put in more equity or for the fund to pay the debt. Read the docs. Jon

To: billgates5043 who wrote (143)	8/5/2005 4:24:27 PM
From: Extra Pale	Read Replies (2) \| Respond to of 173

note holders are taking an equity risk without corresponding reward. taking non-marketable interest accrual notes is very high risk - what is to prevent celtic from coming back two years from now and claiming that in order to attract new funding, note holders must take rate & principal reductions, subordinated position, etc., or face bankruptcy. Another risk consideration is the idea of putting debt on a negative cashflow business. Convertibles primarily get sold because of equity participation, not on a if come cash yield. This is structured to benefit celtic not xnva shareholders. I'm out (taking cash option, really hope it closes!). Best of luck to you.