xbl novoskin preclinical study results, page-4

Dear Billgeld,

The choices you posed were:
"Holding XBL shares now or selling and waiting for an IPO and then getting shares then?"

My choice is to hold shares and not options in XBL (now XCD) as shareholders will be entitled to free shares in the Polynovo float (as originally promised) and I have my tongue hanging out for those free Polynovo shares.

Your question was:
"How do the XBLO options work once it is floated, will they be transfered to Polynovo shares or just expire?"

I believe that Exceed will not cease to be a separate company, it will continue to exist in its own right after Pllynovo has been hived off and floated.

So my understanding is that as XBLO (now XCDO) options are options to buy shares in Exceed Biotechnology, not Polynovo, they will continue to exist until Jan 2010.

Normally only SHAREholders, not OPTIONholders, share in the part of the company (in this case PolyNovo) that is being hived off and offered floated.

This is because though one may hold an OPTION to buy a share of a company sometime in the future one does not actually HOLD a share of the company, ie "own" a part of it.

Unless the terms of the Polynovo float - which are yet to be determined - make a concession to XCD OPTIONholders I cannot see them materially benefiting from the float via a free allocation of shares.

They will still have the option (choice) to buy shares in XCD until Jan 2010.

(Sir) Lunchalot
Scoffer Extraordinaire