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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: cardiologist to be who wrote (5722)	3/30/1998 9:42:00 AM
From: Peter H. Hodge	Read Replies (1) \| Respond to of 18691

GERN announces convertible preferred. Anyone have an opinion as to the effect this may have on the stock price? <<Geron Raises Equity in $15 Million Private Placement and $4 Million Investment from Pharmacia & Upjohn MENLO PARK, Calif.--(BW HealthWire)--March 30, 1998--Geron Corporation (NASDAQ:GERN - news) announced today that it has raised $15 million in equity capital through a sale of convertible preferred stock to investment funds managed by two institutional investors. ''This funding, together with cash on the balance sheet and committed funding from partners, brings our total cash available to $50 million, which will allow Geron to accelerate programs stemming from our recent discoveries in controlling cell life-span,'' stated Ronald Eastman, Geron president and chief executive officer. ''The extension of normal cell replicative capacity through telomerase expression or activation is a breakthrough in the biology of aging that presents opportunities for Geron across our product development programs for treating age-related diseases such as cancer, macular degeneration and various conditions affecting the skin and immune systems.'' The financing was led by an investment fund managed by Rose Glen Capital Management L.P., Bala Cynwyd, Pennsylvania. The financing consists of $15,000,000 face value Series A Convertible Preferred Stock, yielding 6% per annum. With limited exceptions, during the nine month period following issuance, the preferred stock is convertible only after the market price of the common stock equals or exceeds $15 per share. The conversion price of the preferred stock is based on the market price of the common stock during a pricing period preceding conversion, up to a conversion price of $16.88. The preferred stock is subject to redemption at the Company's option if the market price of the common stock exceeds or falls below certain thresholds. Geron has agreed to register the underlying common stock for resale. Additionally, in accordance with the partnership agreement for Geron's telomerase inhibition program signed in 1997, Pharmacia & Upjohn purchased $4 million of Geron common stock at a premium. >> biz.yahoo.com