Here is the IR correspondence dated 12-11-09 with personal information removed.
Sent: Monday, December 07, 2009 6:12 AM
To: Investor Relations
Subject: Questions
The following comment was submitted via the Peregrine Pharmaceuticals, Inc. website by XX
Investor relations: Last week I wrote to you requesting clarification and information. To date I have not received a response. If you have responded; can you resend it? I did not receive it. If you have not responded yet; can you? The following is a copy of the request: There are several questions I have and several issues I would like clarified. Poison pill pricing: Prior to the reverse split the PP price was set at $11.00 1- Is the PP now $55.00? Several months ago the company announced that they would be selling up to $50M through an ATM agreement with William Smith. It appears that approx. $17M might have been raised during Sept. 2- Will you confirm that? Another way for the company to raise money would be to offer to current shareholders an opportunity to purchase directly from the company as well. This has been a successful strategy for several companies. Stock Rights Offerings are shareholder friendly. They would allow the long term investor to directly support the company with a cash infusion and would eliminate or reduce the dilution factor. 3- Will the company offer a Stock Rights offering before the current shareholders are diluted to oblivion? I thank you in advance for your reply
Regards,
XXX
The pricing of the poison pill provision remains at $11 following the reverse stock split.
The amount of capital raised through the at-the-market offering agreement with Wm. Smith is reported in each quarter's 10-Q filing. From the 10-Q filed on December 10:
As of October 31, 2009, we had sold 1,429,582 shares of common stock at market prices under the July 2009 AMI Agreement in exchange for net proceeds of $5,240,000. The average price of the shares sold was $3.78.
Peregrine does not have plans for a stock rights offering at this time.
Thank you for your support of Peregrine.
And FWIW I agree the wording in the filing would appear to imply an adjustment
Regards
Golfho
