PolyMedix, Inc.(fka PYMXQ)

[gfp927z]

DTorpedoes, I ran the numbers for a financing following a R/S, and here's what I came up with (see below). They end up losing just under 50% control of the company to raise $17 mil, or approx 30% owndership to raise $10 mil.

I calculated these figures based on an equity deal priced at $1.75. If you assume a financing deal at $2, then the proceeds from the deal would be $20 mil for 50% of the company, or $12 mil for 30% of the company.

Either way this is a pretty raw deal for PYMX, and the financing entity that gets the 30% or 50% ownership will likely get some seats on the BOD and thus threaten Nic's autonomy to run the company. So I've been thinking this R/S and financing strategy is unlikely, but the possibility of it happening is one of the reasons I'm leery about sitting with the stock -



>>> Current shares outstanding are approx 106 mil (as of year end 2011), so after a 1/6 split there would be be approx 17 mil shares outstanding.

In an equity financing they could only create a maximum of 16 mil new shares and still keep over 50% control of the company. So figure roughly 10 mil shares plus 5 mil warrants would be the biggest they could do.

Based on the current pps of .33, a 1/6 split would put the post-split pps at $1.98/share. If an equity financing was done right after the R/S, at a modest discount, say at $1.75, then PYMX could raise a maximum of approx $17 mil (equity deal for 10 mil shares at $1.75, plus 5 mil warrants).

So Nic could conceivably raise a maximum of $17 mil, but the financing entity would then own just under 50% of the company. To raise less, say $10 mil, the financing entity would still end up owning approx 30% of the company. <<<