Neurobiological Tech (NTII) Message Board

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Biotech / Medical : Neurobiological Tech (NTII)

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Mar 7 3:00 PM EST

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To: Dr. John M. de Castro who wrote (694)	11/11/1999 7:06:00 PM
From: JMarcus	Read Replies (1) of 1494

John, I'd be interested to hear your views on whether the dilution was worth the $4.2 Million. By my calculation, the number of issued and outstanding shares will be immediately increased from 7.56M to 12.81M. Warrants for 2.1M shares at $1.75 could bring in an extra $3.675M in cash, but would increased the number of issued and outstanding shares to 14.91M. I think this was a reasonable solution to NTII's financial problems. At the meeting today, Freiman assured us that he believes there will be no further dilution: once the Phase IIB results are released, the company should be able to nab its big pharma sponsorship (assuming the results pan out as expected). Freiman said that he really needed that bankroll in order to strengthen his negotiating position with both Merz and potential big pharma suitors. As long as he had nothing in the bank and owed Merz $1.2M (the loan is being repaid from the proceeds of the private offering), his credibility as a negotiator was severely weakened. He gave up a lot to procure that credibility, but I think it was worth it. Marc

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