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Threshold Pharmaceuticals Inc. Message Board

  • SMAC693 SMAC693 Jul 10, 2008 5:53 PM Flag

    We have 5 years to get this above ?? cents?

    We get 34 cents PLUS a warrant (long term option) to purchase .4 shares of common stock at an exercise price of 39 cents?

    Not sure how this works.

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    • Tred, Smac:

      Extreme dilution it is. Wow! 112 million shares to share the pie is huge, not so good I think, but THLD will get proceeds for TH-302 and make it to a Phase 2 trial for this drug on their own. No partner for TH-302 and the money is on hand to buy more time for the company and shareholders, maybe 2010.

      Actual cash on hand (end of june)= $13.5 Mill.
      Net proceeds from the offering = $17.0 Mill.
      Net proceeds from warrants @.39 = $ 8.5 Mill

      TOTAL= $39 Million
      OLD + NEW SHARES= 112.76 Mill
      TOTAL CASH/SHARE= .35 Aprox

      Makes me wanna believe the hold company was sold for a missery of .35 cents to the "same old investors" that once funded THLD for the first failed drug two or three years ago (TH-070), why sell it to someone else if they are their old well known frustraded pals?, of course they know something good related to Phase 1 TH-302 results we dont know yet, and the best time to do that WAS NOW?....
      So TH-302 remains in THLD and maybe we´ll just sell 2DG-GLUFOS to other pharma and use those proceeds to fund a phase 3 for TH-302. NO PARTNERSHIP FOR NOW?

    • Great, thanks. I'm actually breathing easier. It looks like we just bought a few more years of life.

      I can wait.

    • I think what has happened is they are raising more cash through something similar to a shelf or secondary offering. The existing shares will still trade, and the implicit value is 34 cents, but this dilutes the common. Also, the "new group of investors" get warrants.

      If this is all correct, I am okay with the dilution. First, the group is paying 34 cents, so I don't see why my shares will suddenly drop. Second, this funding will see us through to the end hopefully. And hopefully the end is bright.

      That said, is this how everyone else on this board interprets this news?

      • 1 Reply to SMAC693
      • I do interpret this as good news, there´s money now but at a high price for existing shareholders just as Tred thinks.
        I did not like the warrants issue because it trends to manipulate PPS in most companies in the market IMO.

        The next step could be a PS regarding P1 TH-302 results due since last June to hold PPS over .30 and then the reverse split (3x1) to keep PPS above $1 to complain with the Nasdaq rules and a total # of 37.5 million new shares.

        PPS for tomorrow and short term?... perhaps well below .30s and then back to .40s level after 2DG and TH-302 Phase 1 results are published and soon a 3x1 reverse split.
        Folks I think this is the beginning of a very long story of how to be a millionare. But it will take us several years.


    • Doesn't this mean that they are diluting the shares? I don't think current shareholders get anything beyond what they already have.

      • 1 Reply to vermonttex
      • Wow, this is the most confused I have ever been.

        Are the 52MM shares BRAND new shares? Are our existing shares being "sold for us" for 34 cents each?

        I suppose we could turn around and buy the new shares if we want to take that chance. But WE do not get warrants, just the new investor "group"?

        This does not mention what happens to existing shares, but it has GOT to the be case they are worth 34 cents, correct? Otherwise, what existing shareholder would vote "yes" for this?

        Clarification, please, tredleon, cancunfish?

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