Tengion Inc. (TNGNQ)

[Bo_Donkey]

I would agree except for the fact that they will probably do a R/s at 1:50, meaning their A/S drops to 200M, with an O/S of around 500,000. I haven't looked through the filings, but if they hadn't bumped up their A/S I'm not sure if they would have had enough shares to cover preferreds, etc... This of course does not block diluting in the future and the percentages remain the same. What will remain to be seen is how they engage in the dilution. Mostly it will likely be used for debt financing. Depending on terms, that might not be so horrid-possibly relatively neutral since they will be adding value to the company, rather than rewarding the CEO or other insider. More exciting would be if they got some increased institutional/VC interest with the higher share price (should jump to around $3 PPS). It is possible that the R/S would be a catalyst for increased share price action and if they were to raise cash by selling smartly into the market it could actually drive share price up.

IMO, this isn't like some pennies looking to just use the market as an ATM, they ARE burning cash to develop a product that will be a good target for takeover, but that requires capital. I don't this they are going to go through the R/S, dilute, R/S cycle endlessly.

GLTA!