CEGE, warrants (delayed response)
Jon: You said
Actual proceeds are really the 60 MM less about 10 MM for the warrant value (5 year warrants probably worth 4-5 per warrant but I do not see details on strike price and I don't have my B-S application on this computer) divided by 10.8.
I said:
No. The warrants haven't been exercised yet, so they didn't bring in any extra cash.
You replied:
Wrong in terms of calculations by both of us.
I said nothing wrong. Actual proceeds means cash, and cash received by Cell Genesys was not reduced one cent because they gave out warrants to grease the deal. In fact they will get more cash if the warrants are exercised, but that's down the road.
Valuing the transaction by considering the effective cost of the warrants may be a worthwhile activity, but it does not change the proceeds received by Cell Genesys.
Regards,
micro
Life is an IQ test.
email: microcapfun@yahoo.com
