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Biotech / Medical : Continental Home Healthcare -A Demographic Play

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To: Garth Richmond who wrote (59)7/6/2000 8:40:34 PM
From: Edward W. Richmond  Read Replies (1) of 69
 
Garth, I finally have an answer to the question of potential dilution caused by the outstanding $0.60 warrants.
If the contribution from the exercising of the warrants is equal to or greater than the shareholder equity per share, the exercising is not dilutive. Also, if the normal bank interest on the exercise price is equal to or greater than the current earnings per share, the exercise is not considered dilutive. Thus the warrants are not included in fully diluted earnings per share.
Hope that helps.
Ed
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