Jeff Moore started job this Month and it is no surprise that Thomas Weisel was contacted this month for advisement. Moreover, Moore worked for Flagship, one of the VC that is heavily vested in the company. So the desire to find a partner with some clout is obvious.
The question beckons is how much is this technology and this company worth. $160 Million is around 30% of what ILMN paid for SOLEXA. Roche paid $155 million for 454. I think those are pretty good valuation tools. I personally think HLCS is further along in development and promise than either Solexa or 454 at the time of buyout. Hence, I am holding still. The market for this explosive and I can see how Helicos can dominate certain niche of the genome market.
Here is your answer!!!!! There are no ghost shares. We currently have 65 million outstanding, and a possible 25 million more with the warrants from the placement in Dec 08.
"On May 24, 2007, the Company completed its initial public offering (“IPO”) of 5,400,000 shares of common stock at an initial public offering price of $9.00 per share"
"On May 24, 2007, upon completion of the Company’s IPO, all of the Company’s 59,189,998 shares of redeemable convertible preferred stock outstanding on that date were automatically converted into 13,153,293 shares of common stock."
So why doesn't Investor Relation's call anyone back to address this question...
I have three friends who all work at wire houses and they have all logged calls to the company to get them to address this and not one of them or me has received a return call...
Here is the answer to the price that was paid for the UNITS... It's not very pretty... The way I read it is the company got $0.43 per UNIT or $18 Million and change....
RIGHT FROM THE 10-Q
In December 2008, we entered into a securities purchase agreement with certain investors pursuant to which we sold a total of 42,753,869 units (the "Units"), each Unit consisting of (i) one share of common stock (collectively, the "Shares") and (ii) one warrant (collectively, the "Warrants") to purchase 0.6 shares of common stock at an exercise price of $0.45 per share, for a purchase price of $0.435 per unit (representing the closing bid price plus an additional amount for the warrants) (the "Offering"). The Warrants have a five year term and became exercisable immediately following the closing of the transaction. The closing of the transaction occurred on December 23, 2008. In connection with the Offering, we raised approximately $18.6 million in gross proceeds. We paid $813,000 in placement agent fees and offering expenses and expect to use the remaining net proceeds of $17.8 million for general corporate purposes.
here is a look at who probably bought the new shares and the warrants.
Highland and Vision? Someone want to look up the balance from back then to see how much they paid per share? It's under a buck for sure, probably around the 75-80 cents, the price it was trading at in December.
In hindsight it is easy to sa, but in the cash strapped markets, it make it tough. Especially when they have you by the short and hairs...and they know it. Anyway, went public in 2007, 5.4 mm shares at 9. I thought there was 20.5 mm after the offering. Everything else being equal another 45mm for the private placement would give us the 64mm outstanding which tehn does not reflect for the warrants or another 25mm shares to come potentially?
160mm is current cap. Somebody posted here yesterday that there is another 60mm shares that are unregistered. So, now at 320mm, if that is true. Then a secondary or other for ~$100mm brings the capitalization to $420mm. If this is all true, the the stock is now fairly valued based on comparison with SLXA etc.
Also, if you look at the market cap and run-rate of quarterly sales in late 2003 and early 2004, then the quarterly sales rate for HLCS would be about 18mm for $360mm capitalization. So far they've announced 6 machines for the third quarter.