Growing debt load
Cygnus (CYGN) also added debt to its balance sheet this month. CYGN sold $43 million of senior subordinated convertible notes in addition to raising $13.8 million through common shares. CYGN's revenues slipped to $29.5 million in 1997 from $36.2 million in 1996, primarily due to the cessation of manufacturing of the Nicotrol patch in 1997, while its cash balance declined to $34.8 million at yearend from $49.4 million at the end of 1996. The near-term revenue opportunity is CYGN's GlucoWatch non-invasive glucose monitor.
The downside: If the debt converted at CNTO's Friday price of $37.625, the company would issue 10.6 million common shares. CNTO currently has 71 million shares outstanding. SEPR's offering increased its fully diluted shares by 4 million to 40 million. SEPR has 27.8 million shares outstanding on a non-diluted basis...