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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: Henry Niman who wrote (24508)	8/14/1998 4:36:00 PM
From: PAR	Read Replies (1) \| Respond to of 32384

what happens after 1999??????

To: Henry Niman who wrote (24508)	8/14/1998 4:45:00 PM
From: jayhawk969	Read Replies (1) \| Respond to of 32384

Thread, The earnings release is disappointing but not totally unexpected. It obviously had a great deal to do with the late afternoon selloff. The current price of the stock has negative implications for Ligand in at least two ways: 1. It will be difficult to do an early conversion on LGNDW at such low prices(why would anyone want to go from an investment that has a maximum risk in it of aprox. 3.5 to 3.5 plus the exercise price?). 2. Further obligations such as Lilly milestone payments and Ontak payments for Ontak approval are anticipated to be in stock. If stock is issued at this price it creates severe dilution. The alternative of cash is nt necessarily a good one either. The pressure is on for this company and its leaders to perform to positively impact the stock price. J.D.

To: Henry Niman who wrote (24508)	8/14/1998 5:39:00 PM
From: lrb	Read Replies (4) \| Respond to of 32384

<<"The Company believes that its available cash, cash equivalents, marketable securities and existing sources of funding will be adequate to satisfy its anticipated capital requirements through 1999.">> But further down we read: The Company has incurred negative cash flow from operations since inception and does not expect to generate positive cash flow to fund its for at least the next year. As a result, substantial additional equity or debt financings will be required in the near future to fund the Company's operations. How can both of these statements be true?