Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (4484)	3/27/1998 7:59:00 PM
From: Cytokine1	Respond to of 9719

Not a whole lotta detail in the GZTC news release. Maybe V1 can dig up some info on the significance of the finance deal. Martin

To: Biomaven who wrote (4484)	3/29/1998 5:19:00 PM
From: Andrew H	Read Replies (1) \| Respond to of 9719

I saw the floorless convertible by GZTC. I have no idea why they did this. It is usually done by companies who are desperately in need of financing and can find no other prospects. I don't think this is the case with GZTC. Perhaps V1 has sme insights here. As you say, such convertible offerings are often used as a method to short the stock and bring it to much lower prices where the conversion takes place. I have seen a number of stocks devastated by such convertibles. I will have to check the details in the SEC filing, but on the surface I find this offering quite troubling and would not be surprised to see lower prices once the 9 month period has passed. Of course significant progress by the company could push demand high enough to negate this potential problem. The company remains, IMHO, one of the brightest stars on the developmental biotech horizon.