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Biotech / Medical : Techniclone (TCLN) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Baker who wrote (957)	12/30/1997 12:04:00 AM
From: Maurice Winn	Respond to of 3702

Jim, thanks for correcting me: "They also obtain cash by selling debt (convertible into stock at higher than market prices). They also obtain cash by doing deals -- partnerships, technology licensing, and so on." The first one is really just equity by another name, with preferential payments to the new [convertible] shareholders = more existing shareholder dilution. The second I admit to sloppiness. Sorry. In fact I'm in favor of licensing and royalties as a synergistic mechanism to get technology moving fast, introducing money, expertise and competition. I hadn't read the press release. I was just making general comment in regard to other recent comments on dilution, shareholders getting hosed, raising money etc. But until there is something to show prospective licensees, and it is somewhat ready to go, the funding is usually from equity providers who understand the technology, trust the idea creators [or are the people themselves] and are prepared to stump up total risk money. Judging from Techniclone's share price, there is a long way to go before they have merchantable products - or the shareholders are badly undervaluing the company. Maurice