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

To: LLCF who wrote (27245)	1/6/1999 4:20:00 PM
From: Jack Be Quick	Read Replies (1) \| Respond to of 32384

<<No, what it means is the warrants are outstanding.... they WILL turn into stock... the fact that they turned into stock 1 1/2 years early IS NOT A DILUTION.>> In the minor nuance category (yeah, I know, what's that doing here?), it seems to me that there is a difference between 'share' dilution, and 'capital' dilution. Consider a private secondary placement under which Ligand issues 1 newly minted share of LGND to the SI investor known as Mudcat for 1 billion US dollars. Good deal for current LGND shareholders, arguably bad deal for the muddy one. Now consider a different placement under which the mudster gets one shiny new share of LGND in exchange for one shiny new US penny. Happy day in Mudville, grumpy day for the other odd denizens of Lake Ligand ("Why does Mudcat get special treatment? What's so special about Mudcat? Mudcat never plays nice!", etc.). Same number of shares outstanding after the deal, big difference in the mudfeline's outlook on life. (Also, isn't there an unimaginable scenario under which the warrants would not be exercised?) Just thinking out loud. Regards, John