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Talon Therapeutics, Inc. Message Board

  • mastergolf65 mastergolf65 Jan 11, 2013 6:03 PM Flag

    Sold preferred stock 60,000 shares

    Can anyone here explain to me what does this mean to the common stock. When TLON sold 60K share @$100/shares? to a private investor? What is the advatange of these investor compared to you and me. I can think of preferred stock like the prime lender they would get money first before second lender when the house is auctioned or forceclure. In this case if the company liquid this private investor will get the company assets whatever left may go to ppl who own common share holder. My next question so how does to the total shares effect? Does this mean shares are dilluted? Please educate me.


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    • TLON gets another $6MM and the proportion of the company owned by WP increases. WP probably owns close to 90% of the company. The rest of us folks have the common shares, float, which is low. The way WP makes their money is when they sell a position, that is their strategy. They have no incentive to convert their preferred shares only to look for a buyer of TLON - WP has three members on the BOD ' some with experience in M&A. This is another reason GS was brought in to evaluate a "strategic direction."

      Essentially retail investors are riding on the coattails of WP. The broader question is what is TLON worth? I think the real reason GS was brought in is to make that determination. It would be nice to know the top line results of the menadione phase two trial - success there means the market for menadione is over a billion dollars.


      • 1 Reply to bhakes_98
      • 188 million fully diluted. That is what it means with the last A-3, if all converted. Tlon made a deal with the devil (WP) by selling the shares for such a low conversion rate, thus we are stuck with such a low Share price. I hope WP does not sell the company for anything less than $400 million. That would at least put the SP to be about $2.00. One can only hope. WP and DF invested 66 million in TLON so far. But forced TLON hand to set the SP conversion price to be .35c. This deal really stinks. Very frustrated but no one to blame but myself for not selling in time.