Question-and-Answer Session
Operator
(Operator Instructions). We do have a question from Bill Boutin with Indusino Capital Management.
Bill Boutin - Indusino Capital Management
Just a couple of quick questions. First one is on the balance sheet. Given that you raised money in Arrowhead itself and you have been cutting back and streamlining, where does the run rate go from here now per quarter and how long do you think you can last with the $10.1 million that you have on the balance sheet at the end of September as well as what is in the subsidiaries?
Dr. Christopher Anzalone
That’s a good question. There are actually a number of options on the table for us, for bringing in additional capital. As you mentioned, we have brought in capital directly into Calando and Unidym, our two most mature subsidiaries, and therefore our biggest consumers of capital, and as we continue to do that that will allow us to decrease the pressure on Arrowhead’s balance sheet. We could enter into funded JDAs, for instance, with Unidym we could enter into partnerships; with Calando, we could see a liquidity event with Calando, we could see a liquidity event with Tego. Anyway, there’s a whole host of options to bring in additional capital and we are pursuing most of those right now. We think it is reasonable to expect that a number of those will bear fruit and provide us with additional capital. However, we do have a plan to continue operations through fiscal 2009 even into fiscal 2010 with the capital we have on the books. So, the worst-case scenario, if none of those options pan out, we’re still able to continue operations and to continue the subsidiaries’ running.
Bill Boutin - Indusino Capital Management
And then, I noticed when you raised money into Calando, according to the AK filing, it was actually done as a loan; what percent of the company will Arrowhead own assuming a sale if that is converted to stock?
Dr. Christopher Anzalone
Right. We have approximately 67% ownership in Calando right now. The reason that we structured that as debt is that we believe that we are near a liquidity event and we thought that it was the cleanest way to bring in that additional capital that will provide that run rate to a liquidity event. So, we own roughly two-thirds of the company.
Bill Boutin - Indusino Capital Management
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