Dendreon would have received a "Going Concern" Audit Report had Gold not completed this small financing. The financing, albeit dilutive, prevents "Going Concern" comments in DNDN's Audit Report, and eliminates and exposure to DNDN receiving a delisting notice.
The timing by Mitch was, IMHO, quite good in that he did the financing AFTER delivering and releasing a PR for EVERY promise for 2006. Perhaps he could have waited for the momentum to take us up another 25-35 cents before the hedgies bang it down, but this would be risky. I dont like the 15% discount, as I believe it is steep but the impact of 15% vs 12% or 10% on this size financing is minimal. Also, Gold smartly and successfully hedged against the possibility of a thumbs down from FDA Panel in Feb/March, so he secure our financial survival to [or nearly to] the first release of IMPACT data which IMO has a 99.9 percent chance of success.
I give Gold credit for firing all of his bullets [positive PR's] then doing the secondary - the hedgies and shorts held us down.
1. Prostate-specific cause mortality demonstrates a 12 month survival advantage by Provenge over placebo.
2. The CD54 MOA Correlating Potency of PROVENGE to Survival.
3. The Stat Sig 35% delay in PSADT, and the safety and other positive data in the P-11 release.
4. The 14 month survival advantage that Provenge + Tax offers over Placebo + Tax, and other positive data in this release.
5. The completion of the CMC Section of the BLA a full 50 days before year-end 2006.
Good Luck to all DNDN Longs,
BTB
AI
