Re: pSivida
When I reviewed pSivida last autumn (summarized in msg #751), I concluded that PSDV will ever be a serious competitor for SRDX because of the precarious nature of PSDV’s finances.
Even with the Collaborative Research and Licensing Agreement with Pfizer that you refer to in msg #1119, I continue to believe that pSivida’s financial status is a severe handicap that will hamstring its operations and that make it a poor investment choice. Their problems are amply discussed in the Form 6K that they filed with the SEC on 4/2/2007.
I note that as part of the Collaborative Agreement, Pfizer has a clause allowing it to exit if PSDV does not redeem an outstanding convertible note prior to June 4, 2007. The premium that PSDV had to pay to redeem this note is detailed in a Form 6K filed today, i.e.:
Boston, MA. and Perth, Australia - pSivida Limited (NASDAQ:PSDV, ASX:PSD, Xetra:PSI) today announced that it has entered into an agreement with its principal institutional lender, Sandell Asset Management Corp. (Sandell) whereby Sandell has agreed to close the December 29 th , 2006 amendment to the Convertible Loan which was announced on January 2 nd , 2007 and, in conjunction with the closing, pSivida has issued an irrevocable redemption notice for the entire balance of the convertible loan. Sandell has extended the forbearance agreement until April 7, 2007 to facilitate the prompt closing of that agreement.
pSivida will issue warrants to Sandell to acquire 4,000,000 American Depository Shares (ADSs) with an exercise price of US$2.00 per ADS, as previously agreed. pSivida has issued a redemption notice for the entire convertible loan pursuant to which the outstanding balance of the loan will be repaid in early June 2007. In connection with the redemption, as required by the terms of the loan, pSivida will issue warrants to acquire 2,341,347 ADSs. pSivida will also issue to Sandell warrants to acquire 4,000,000 ADSs with an exercise price of US$1.57 per ADS and warrants to acquire 1,000,000 ADSs with an exercise price of US$1.95 per ADS. All issued warrants will have an exercise term of 5 years.
“This agreement enables pSivida to move forward with a much simpler capital structure facilitating the company’s future development” said Dr. Paul Ashton, Managing Director, pSivida Limited.
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