Have been sent notification of share/warrant offer. Does anybody have any opinions about it and also can someone explain exactly what a warrant is and how it is traded.

Hi Chris , now what do you do ? is it a good sign ?or bad sign ? do you dump them? or buy some more? Thanks for taking the time to explain Mary

Hi,

It can be good or bad - depends what the company wants to use the money for. Sometimes its a cheap way for companies to raise a bit of cash - if their price falls then the warrants will not be exercised, if the price rises then the company will be happy anyway. (ish - and forgive abbreviation)

I know little about Xenova and less about you, so I can't advise if its a good thing or a bad thing for you to do .... sorry. In very broad terms it depends what the money will be used for.

Funding an exciting new product that will make lots of money = good thing.

Raising enough cash to stay afloat = bad thing.

A quick extract from the newswire follows, and I am still not entirely sure which of the above applies !!

Xenova said on the 26th of November that they didn't have sufficient working capital without new funds. They also said that:

LONDON (AFX) - Xenova Group PLC said it plans to raise 21.1 mln stg through
a UK placing, a US private placement and an open offer, and also plans to
reorganise its share capital.
The proceeds will fund the first phase III trial of TransMID and help
develop the company's later stage programmes, it said, warning that without the
fundraising, Xenova would not have sufficient working capital to support its
currently planned level of activities for the 12 months following publication of
the Prospectus.
As part of the restructuring following completion of the acquisition of KS
Biomedix, the company said it is now in advanced negotiations with respect to
the disposal of the Farnham property and expects shortly to agree a sale. Xenova
is also in negotiations with respect to the disposal of related non-core
research activities at that site.

so from what i can make out they are looking for money to stay afloat. But have a few bits to sell and if it comes up with a good result on one of its test they will be ok but if no good new comes out the money will be going down the drain fast. I am just a small player but love a bit of a gamble. This is the first time i have had any questions to ask , and you have been great Thanks Mary

Mary...from what I can gather XEN need this cash to take the drugs in the pipeline onto the next stage. It is quite common for a Pharmaceutical Research Co to require a lot of investment before they eventually bring something to the market.Hence the shares will bumble along the bottom for a lengthy period of time...However when they make a real discovery then their shares are likely to take off ala Pfizer a few years back and recent climbs for Alizyme and also Cenes and others.
As far as this placing is concerned you have the opportunity to buy shares and warrants at a very reasonable price with no dealing or spread costs.
If you say YES and Xenova do not raise the TOTAL cash they are hoping for, your money could go down the pan as Xenova have said they only have enough funds to survive 12 months...however if you say NO and they get all of the funds they require, it is my guess that they will rise as they will have funds that can finance their research, without having to go cap in hand to the lenders at high interetst rates.
In the end it is your decision, but unfortunately you cannot do your lottery numbers on a Sunday morning...Be lucky

Thanks for all the advice, think I will take a gamble - one more question,on purchasing shares at a later date via warrant price will I be liable to stockbroking charges or are they exempt?

All that matters is -- they do not have sufficient working capital...AND
they cannot get the money from the banks rgds aj

Hi bucketts that was nice of you to take the time, you sound as if you know what you are talking about. I will have a look at the price they are asking nearer the time and then make up my mind.Hi Ellie if you aready own shares their wont be any stockbroker charges so thats a bit of a saving if you buy. Take care Mary