Smaller follow-on offerings are a by-product of soft equity markets. But last week's $50 million convertible note deal by Hybridon should serve as a reminder that big money can still be found in down markets (details, B13). Such deals make an end-run around a poor equity market by setting up structures that in effect sell stock at a future date.

HYBN's notes are convertible into HYBN common at $7.0125. If all the notes convert, HYBN would issue 7.1 million shares on top of the existing 25.1 million shares outstanding, giving the noteholders 22 percent of the antisense company.