ARRY: I am on travel and somewhat busy; a CC transcript would be more appropriate than my notes, since there was a large volume of data presented and I gave up on scribbling.
I'm not a finance guy; however, the transaction sounds quite positive to my ears. They have sufficient cash thru 2010 at favorable terms: $80M payable at any time via cash or appreciated stock or a combo of both to an existing large shareholder nlt 2014 at 6.5%. The warrants represent 6M shares of future dilution at a 26% premium to yesterday's close, which also represents another $45M in cash to the company. Unlike most companies, ARRY is addressing future cash issues now, rather than under possible duress later. This is in spite of the fact that they have plenty of cash today.
The cash ensures bringing 6 drugs to PIII by the end of 2009; partnering discussions are unaffected, one could make the case (as management did) that it strengthens ARRY's bargaining position going forward.
Again, the transcript is chock full of drug development talk. ARRY doesn't PR the minutia of drug development details, but there is considerable activity. Pls listen to the call.
FWIW, I added yesterday.
"Illegitimacy is something we should talk about in terms of not having it."
- Dan Quayle
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