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 : Supergen (supg) -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (84)	5/20/1999 9:30:00 AM
From: Biomaven	Read Replies (1) \| Respond to of 124

They did sell some stock to an institutional investor at the end of 1998, which may well have been this bank. Their 10-K says they have no credit line, and doesn't mention this agreement with the international bank at all. Maybe it is not a binding commitment, just an understanding. From the latest 10-Q: Our stock purchase agreement with Tako Ventures, LLC ("Tako"), an investment entity controlled by Lawrence J. Ellison, a director of the Company, executed in June 1997, gave Tako certain rights to participate in future sales of common stock at comparable terms and conditions. In December 1998, we closed a private placement of common stock to an institutional investor at a 4% discount to a weighted average stock price prior to the purchase. As a result, in January 1999, Tako exercised its rights and purchased 61,350 shares of unregistered common stock for a total purchase price of $400,002. We granted Tako registration rights in connection with this transaction. In March 1999, we executed a secured promissory note with Tako under which we may draw up to $5 million through December 31, 1999. The interest rate for any amounts advanced under this agreement is 10%, payable monthly, and all principal and any unpaid interest are due on March 25, 2000. The note is secured by substantially all our assets. At May 11, 1999, no advances had been drawn on this note. In connection with this transaction, we issued Tako a five-year warrant to acquire up to 500,000 shares of unregistered common stock at an exercise price of $11.00 per share. We have calculated the value of this warrant using the Black-Scholes valuation model. The significant inputs we used in the model were volatility of 0.6, expected life of three years, and a risk-free interest rate of 4.5%. The value of this warrant has been estimated at $2 million, and has been recorded in Stockholders' equity and as a Prepaid loan commitment fee. This fee is being amortized through non-cash charges to operations through December 31, 1999.

To: Spekulatius who wrote (84)	5/20/1999 9:30:00 AM
From: Biomaven	Respond to of 124

They did sell some stock to an institutional investor at the end of 1998, which may well have been this bank. Their 10-K says they have no credit line, and doesn't mention this agreement with the international bank at all. Maybe it is not a binding commitment, just an understanding. From the latest 10-Q: Our stock purchase agreement with Tako Ventures, LLC ("Tako"), an investment entity controlled by Lawrence J. Ellison, a director of the Company, executed in June 1997, gave Tako certain rights to participate in future sales of common stock at comparable terms and conditions. In December 1998, we closed a private placement of common stock to an institutional investor at a 4% discount to a weighted average stock price prior to the purchase. As a result, in January 1999, Tako exercised its rights and purchased 61,350 shares of unregistered common stock for a total purchase price of $400,002. We granted Tako registration rights in connection with this transaction. In March 1999, we executed a secured promissory note with Tako under which we may draw up to $5 million through December 31, 1999. The interest rate for any amounts advanced under this agreement is 10%, payable monthly, and all principal and any unpaid interest are due on March 25, 2000. The note is secured by substantially all our assets. At May 11, 1999, no advances had been drawn on this note. In connection with this transaction, we issued Tako a five-year warrant to acquire up to 500,000 shares of unregistered common stock at an exercise price of $11.00 per share. We have calculated the value of this warrant using the Black-Scholes valuation model. The significant inputs we used in the model were volatility of 0.6, expected life of three years, and a risk-free interest rate of 4.5%. The value of this warrant has been estimated at $2 million, and has been recorded in Stockholders' equity and as a Prepaid loan commitment fee. This fee is being amortized through non-cash charges to operations through December 31, 1999.