Insmed Inc (INSM)

[INSMBULL]

Glad to find this board. I have been a long time follower from INSM side pre Celtrix merger. I have seldom posted on the yahoo board but always follow...

On the capital raise - the company has a few choices - I am no expert but here is what I have seen -

1. Register for a public offering and sell newly issued shares to the market. This would not likely be feasible for less than $75 m raise. Assuming 100 m shares outstanding on fully diluted basis; $2.75 share, this would represent considerable percentage ownership dilution. This might be more realistic after some initial sales and once the PPS trends up a littlle bit. They could start this process and follow the price - and pull the plug if they don't like it...going with an option below. The willingness to entertain this option - and enhanced market price would provide more leverage with a strategic.


2. Private placement of public equity securities (PIPES). This may be more feasible and a smaller $$$ raise - anywhere from $10m to $50m might be likely. This could be be straight common with warrants or convertible notes with warrants.

3. Partner for a european distribution partner in exchange for -

(1) Up front royalty fee $5m to $10m best case; or
(2) private investment by partner in company ($5 to %50m).

The nature of the partnership could be as narrow or broad as the parties are willing to entertain....it would likely address some co-sposnsoship of the label expansion clinical trials.