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

To: bob zagorin who wrote (25848)	9/29/1998 4:14:00 PM
From: tom r. phillips	Respond to of 32384

Can any knowledgeable thread participant comment on the implications re. impact on stock price for next year of this part of the agreement? -- "Elan will purchase the Common Stock for $20.0 million ($11.65 per share) in two installments, the first for 1,278, 970 shares ($14.9 million) on September 30, 1998. The second will be for 437,768 shares ($5.1 million) when regulatory clearance of the transaction occurs." "Upon regulatory clearance, Elan will purchase Notes with an issue price of $30 million which will be convertible into Ligand Common Stock at $14.00 per share. Subject to certain conditions, at Ligand's request, Elan will purchase additional Notes with an issue price of up to $80 million prior to December 31, 1999. The additional Notes will be convertible into Ligand Common Stock at a price which is the average of the closing prices of Ligand Common Stock for the 20 trading days immediately prior to the issuance of a Note plus a premium; however, in no event will the conversion price be less than $14.00 per share or more than $20.00 per share." tom phillips