Biotech Values

[DewDiligence]

No PIPE coming (IMHO):

>> do you think GENR could be selling off due to another financing/PIPE? <<

GENR’s 2001 shelf registration for $50M is almost exhausted, so GENR would need to file a brand new registration with the SEC to raise a substantial sum, and a new registration would take a few months to become active.

To recap: GENR filed a $50M shelf registration on 11/20/01. Since then, GENR has drawn against this shelf four times: $7.6M on 4/11/02, $5M on 5/28/03, $8.5M on 11/11/03, and $20M on 1/22/04.

The total of the above financings pursuant to the 11/01 shelf registration comes to $41.1M, leaving only $8.9M remaining. Thus, any new financing pursuant to the shelf would be limited to $8.9M.

It would seem that $8.9M of new money would be insufficient to accomplish much clinically, so I rather doubt that we will see another PIPE. It is possible, of course, but I think it would show poor judgment on management’s part.