Or maybe they will sell off the TRPM8 treatment. They have removed direct access to it from the current web main pages. (i.e. if you know the direct link, you can find it, but if not, you can't get to it fron the main page (at least I couldn't).
it's no different than doing a 215.7M share secondary at $3 (which would probably be more like 250M shares once the banker fees are added), leaving total shares in the company around 404M vs the 154M today. the two they have are: 1) only the short hedgefunds are truly willing to buy the secondary, and 2) the hedgefunds will not pay $3 for the placement because dendreon's failing financials do not justify the price, and 3) there are few institutions willing to buy the remaining 200M shares of that 250M share secondary for a multitude of reasons.
but let's assume the company could shift the entire debt from bondholders to shareholders. the company is still losing all overseas markets to zytiga and xtandi... and xtandi will likely get pre-chemo approval within a few months, so U.S. sales will certainly begin to suffer by late 2014 just when the company is running out of cash. what then? that's why the company must raise significant additional operating cash now.... because it must put these funding issues to rest so it can survive until mid-2015 when they pray automation will help them breakeven on $50M in quarterly sales. dilution will be massive and everyone short believes this stock will trade under $2.
I'd be willing to pay 4 bucks for every share I hold now, throw in a warrant for every share like they do for the big guys and I'm IN!!! Until we 'know' what outcome/solution is, I wouldn't want to add more than I've got...
I think many companies should try this approach. Not everyone would do it but I think many would, especially with a heavy shorted stock like this one.