Replies to post #1709 on Dendreon Corp fka DNDNQ

[tourburn]

Bio_Tech_Boss

I've been sitting here quietly - just want to state here that I think your post is dead on.

tourburn

[croumagnon]

Assuming your Going Concern theory is correct, and I am not sure it is, then the least Gold could have done is state in no uncertain terms that some minor financing in the near future may occur in order to avoid a going concern note by auditors. Instead, he sort of hinted at the CC prior to the financing that they would not be going for additional financing, and thus simply mislead investors. Perhaps for opportunistic reasons he did not want to alert investors to his intentions, and in that case he should have explained his logic very clearly after the fact instead of leaving it to the street to interpret this panick financing in the worst light possible.

As for the going concern note, it is my understanding that such a thing would not have happened prior to the Spring and therefore the timing of this secondary was simply pitiful. Had Gold waited a month or two, we would have received those $40 million at half the dilution that occurred currently and we would be well past the $5 threshold that is crucial for our upside...

[eagle-eye]

Bio Tech Boss, Excellent Post! Finally somebody explained why Gold had to do this financing now. To wait until the panel vote would have been foolish and like you said he had to avoid the going concern issue. I knew financing of some sort was coming soon. Now cash is available until the first look at 9902B data is ready, just in case. That is the extra runway he was referring to.

[bubba_smh]

The question for me regarding this last secondary has always been one of candidness versus business acumen. Why didn't Gold simply state at the quarterly CC that they are not shutting the doors on any financing scenarios at this time versus stating that they would definitively not do anymore secondaries at these "low ball levels."

[bullcall56]

"The timing by Mitch was, IMHO, quite good in that he did the financing AFTER delivering and releasing a PR for EVERY promise for 2006."

Unfortunately he began sending out feelers to the financial markets before the news, thus alerting anyone who got the word that a shorting opportunity was upcoming and allowing the short hedgies to cap without fear. Going concern was not an issue which needed to be addressed so soon.