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   Stock Warrant Off-Balance-Sheet Research...
   















 

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Stock Warrant Off-Balance-Sheet Research and Devel

A financing technique used principally in the biotechnology industry in which a separate corporation or partnership owns the property rights to certain research and development results. The financial statements of the separate organization are designed to have no impact on the sponsoring 'parent,' and the financing comes from a public offering of units in the R&D venture. Each unit has one share of the venture's common stock that can be called by the sponsoring parent and one warrant to purchase a share of the common stock of the parent that permits the investor to maintain a position in the results of the venture.

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