Biotech Values

[mcbio]

Re: CYCC preferred shares

CYCC hasn't paid the 6% dividend on the preferred's in a while - there's accrued interest that will be paid back if they ever get a partnership deal - that dividend cant be dilluted.

Any sort of $$$ raise means they'll likely try to pay the back dated coupon payments they missed and there could be some nice upside - I havent looked at them in a while but i recall the potential $$$ needed to be paid out to those holders is pretty big - I was looking at them at $1 a few months ago - when CYCC popped. I'd have to dig around and find the terms when they were issuded - I cant recall what price they were issued at (so each coupon would be that * 6% annually (lets say its $10 for argunment) then they would have about $.60 in interest owed to those shareholders) the conversion price is so far away it's unlikely those "options" are worth much

Forgot to mention, we touched on the preferred shares before when trying to arrive at the fully-diluted market cap for CYCC. See: http://investorshub.advfn.com/boards/replies.aspx?msg=43355024

About 3 million 6% preferred shares issued at $10 in 11/04 and only about 2 million preferred shares remain. The annual cumulative dividend looks to be about $1.2 million based on preferred shares remaining and the terms. All told, I don't see the preferred shares being a significant overhang limiting upside in the common stock.