The easy option for the company is to issue ADR's via reg D 144A private placement to qualified Institutional buyers I counted around 20 in the State Street announcement released yesterday. I believe they bought post the Ryoncil FDA announcement & own approx 4% of Mesoblast. The company could place ADR's to the QIB's at an equivalent price of A$2.88 and encourage GG to exercise some or all of his 15mm warrants at $2.88. The benefits being 1 the company raises USD where a lot of its expenses will be going forward. 2 MSB includes GG as he did provide the convertible facility option when it was needed. 3 it increases US QIB's holding of MSB 4 it excludes current holders who have front run this capital raise 5 it excludes any short positions 6 it allows the company to raise more than $50mm if this is required by the board 7 it can be done at market or a slight premium as there should be plenty of demand 8 it can be managed by JPM tying it into their healthcare conference starting next week Monday (note if managed by JPM the company will have to say they do not want stock going to any hedge fund that shorted MSB via JPM's prime broking services).
The company can probably use another bank to do the deal but clients looking to pay JPM for the healthcare conference would find this an easy way to do it.
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