Biotech Values

[DewDiligence]

Financial machinations from Sirna

[The company has allowed the holders of its old warrants to exercise them and, in addition, receive some brand new warrants gratis. I don’t care for this sort of preference for institutional holders at the expense of ordinary shareholders.]

http://biz.yahoo.com/prnews/050104/latu043_1.html

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Sirna Therapeutics Raises $6.8 Million in Warrant Exercise in Support of New RNAi Product Development Opportunities

BOULDER, Colo., Jan 4 /PRNewswire-FirstCall/ -- Sirna Therapeutics, Inc. (Nasdaq: RNAI - News) announced today that it raised $6.8 million from some of its largest stockholders, Sprout Group, Venrock Associates, Oxford Bioscience Partners and Granite Global Ventures through the exercise of 2.7 million warrants. The funds, when added to exiting cash resources, will enhance the Company's ability to extend its leadership position in RNAi research, development and clinical programs in age-related macular degeneration (AMD), chronic Hepatitis, Huntington's Disease and its dermatology program for hair removal, as well as the opportunity to expand into new development opportunities.

Howard W. Robin, President and CEO of Sirna Therapeutics, commented, "The Sprout Group, Venrock Associates, Oxford Bioscience Partners and Granite Global Ventures have pioneered investment in RNAi technology. Their insight and understanding of the breakthrough nature of short interfering RNAi (siRNAs) as a new generation of therapies adds to their impressive track record of market winning investments. We are extremely proud and fortunate to count among all of our stockholders these important financial leaders of the biotechnology industry."

In the completed warrant restructuring and exercise, the parties in the aggregate exercised 2.7 million warrants and received 2.7 million common stock shares representing an approximate 7% increase in issued and outstanding shares of the Company. The original warrants allowed for cash or net exercise and had a five-year term with over three years remaining before they would have expired. Because each of the original warrants was exchanged for shorter term cash-only warrants, the warrantholders were also issued 1.1 new warrants with a five-year term. These additional new warrants are exercisable in cash or by net exercise and have an exercise price of $3.85 per share, subject to downward adjustment to the price, if lower, of any qualifying capital-raising private placement on or before June 30, 2005 or, in the absence of a qualifying private placement, to the Nasdaq closing selling price, if lower, of company common stock for the 15 trading days as of June 30, 2005. The new warrants provide a possible vehicle for future investment in the Company by the investing parties. The warrant restructuring was approved by a special committee of disinterested members of the Company's board of directors. [LOL]
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