I agree, but that's the public offering. The conversion of the loan to shares is tied to TLD as I understand it, they have to make shares available to the lender under terms of the loan at that time, I don't believe it has anything to do with when they have a public offering. I don't see a public offering before the Annual Meeting where I believe more shares should be authorized, then they can run a public offering. Additionally, once more shares are available those holding options should be able to convert them to shares as well.
L.P. has been a master at financing the company and holding the OS below the currently authorized threshold, but all the options would exceed it. The authorization of additional shares, probably 2 billion or more, makes sense as it puts the company on stronger financial footing and provides shares that will be necessary if an equity partnership is under consideration.
If there is a partnership the company will be on very solid financial footing in taking the vaccine through approval, manufacturing, distribution and sales as well as running additional trials. Without the partnership they'll need the additional shares to fund these activities until revenue from DCVax-L sales build to the point where they're profitable. Either way the additional shares are needed.
In an equity partnership it's very possible that some shares the partner receives will come from current investors, as well as new shares, so while the partner may end up with say 30% of the shares, perhaps only half of them will be newly authorized shares.
Gary
