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Oscient Pharmaceuticals C (OSCI) Message Board

  • bauerzdk bauerzdk Oct 1, 2005 12:53 PM Flag

    This could be great news

    I can see that a lot is worried about dilution if the 100 mio $ shares is going to be issued.

    I actually find this new very positive ->

    First of all, Oscient is probably in late ongoing discussions with a partner for Factive. Normally these partnerdeals includes a upfront payment and a percentage of shares in the company, to share the risks.
    100 mio $ sounds like a huge stake compared to the current ridicules marketcap, but the future potential of Factive in various conditions is not to be neglected.

    My first bet was that Luke maybe was selling 50% of BBB's share as part of a deal with the future partner, but now it looks more like the "normal" procedure is taking place.

    Rauscher did also mention that Oscient might go for an emission late 2006 in his last presentation, so it would be reasonable to believe that a 20-40 mio $ stake was for the partnerdeal and the rest could be an emission in 2006 to raise some additional funds...

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    • Lot of stupid people on this board.

      1. OSCI would RECEIVE money for a partnership, not give any.
      2. OSCI has not sold any shares, or announced an intention to do so. A shelf registration is a normal corporate event...it does not imply an intent to sell.
      3. There is NO dilution. No shares sold.
      4. OSCI does not currently need cash.

      • 1 Reply to mdv_92126
      • U might want to understand what I wrote instead of calling me stupid! Why not create a nice a tone in here, so that more people would actually want to contribute to this message board .....try take a look at the MEDX-board, which is a unique board with some great posters.

        When OSCI partners Factive within a short period of time, they will recieve a upfront payment, as I wrote. I might not have been clear enough, but with "normal procedure" I asummed that everyone understood ==>>>

        OSCI recieves money (upfront) for a partnership AND will issue some new shares to this partner. So OSCI's partner will pay x mio $ in upfront and y mio $ for a number of shares in OSCI, as part of the deal => a lot of cash to OSCI and a small dilution.
        That is a normal procedure in the biotech industry to "share the risk", so nothing weird about that.

        So with this registration in hand, they can put pressure on a Factive partner.... "If you will not pay the price we are strong enough to go on our own"

        So to sum it up, I think would be reasonable to believe that a 20-40 mio $ stake is for the partnerdeal => OSCI sells 20-40 mio $ worth of new shares to a partner !! (ex. take a look at ALNY to compare)
        ......and the rest of the 100 mio $ worth could be an emission in 2006 to raise some additional funds... WHEN the shareprice is fair valued as Rauscher said.

        Regards....

 

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