Dilution..........
Taken from ANX 1/7/11 filing
If you invest in the units being offered by this prospectus supplement, you will suffer immediate and substantial dilution in the net tangible book value per share of common stock. Our net tangible book value as of September 30, 2010 was approximately $28.8 million, or approximately $1.96 per share of common stock. Net tangible book value per share is determined by dividing our net tangible book value, which consists of our total tangible assets less total liabilities, by the number of shares of our common stock outstanding on that date.
Dilution in net tangible book value per share represents the difference between the price per share of common stock paid by purchasers in this offering and the net tangible book value per share of our common stock immediately after this offering. Without taking into account any other changes in the net tangible book value after September 30, 2010 other than to give effect to:
• our receipt of the estimated proceeds from the sale of 8,184,556 units in this offering, and the 8,184,556 shares of common stock comprising a part of the units, at an offering price of $2.75 per unit, less the estimated placement agent’s fees and our estimated offering expenses,
our net tangible book value as of September 30, 2010, after giving effect to the items above, would have been approximately $49.7 million, or approximately $2.17 per share of common stock. This represents an immediate increase of approximately $0.21 in net tangible book value per share to our existing stockholders and an immediate dilution of approximately $0.58 per share to purchasers of units in this offering. The following table illustrates this per share dilution.
Public offering price per share of common stock $ 2.75
Net tangible book value per share as of September 30, 2010 $ 1.96
Increase in net tangible book value per share attributable to this offering $ 0.21
Pro forma net tangible book value per share as of September 30, 2010, after giving effect to this offering $ 2.17
Dilution in net tangible book value per share to new investors in this offering $ (0.58 )
The above is based on 14,701,216 shares of our common stock outstanding as of September 30, 2010 (as adjusted for 8,184,556 shares of common stock to be issued in this offering), and excludes, as of that date:
• 779,086 shares of common stock issued upon conversion of our series F convertible preferred stock;
• 421,737 shares of common stock issuable upon the exercise of outstanding stock options issued under our equity incentive plans prior to this offering, at a weighted average exercise price of $13.37 per share;
• 387,969 shares of common stock available for future issuance under our 2008 Omnibus Incentive Plan;
• 4,055,030 shares of common stock issuable upon the exercise of outstanding warrants, at a weighted average exercise price of approximately $10.20 per share;
• 2,046,139 shares of common stock issuable upon the exercise of the series A common stock warrants to be issued to the purchasers in this offering, at an exercise price of $2.75 per share;
• 2,046,139 shares of common stock issuable upon the exercise of the series B common stock warrants to be issued to the purchasers in this offering, at an exercise price of $2.75 per share; and
• 409,228 shares of common stock issuable upon exercise of warrants to be issued to the placement agent in connection with this offering, which are not covered by this prospectus supplement, at an exercise price of $3.44 per share.
To the extent that any options or warrants are exercised, new options or other equity awards are issued under our 2008 Omnibus Incentive Plan, or we otherwise issue additional shares of common stock in the future, there will be further dilution to new investors.
on statement from 1/7/11 filing.
AI
