Paracelsian Inc (PRLN) Message Board

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Biotech / Medical : Paracelsian Inc (PRLN)

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To: paul goldstein who wrote (357)	9/14/1996 11:12:00 AM
From: John H. Farro	of 4342

Paul, I am a small investor who's owned stock in Paracelsian for about 3 years. I know I'm violating every rule of investment by not diversifying because I've tied up most of my investment money in Paracelsian. I just came across this forum a couple of days ago and I've been fascinated reading through the postings. In post 357 you mentioned that PRLN could raise money through its warrants: >now, over 4.75 for 20 trading days and they could call in the >convertible warrents. that brings in about 7 million in cash for >free. cost? allready figured in current prices..will it happpen? of >course. I hope you don't mind a newbee to this forum like me noting a minor correction. Paracelsian does not have to wait for 20 trading days after the stock goes over 4.75 to call in its warrants. It traded over 4.75 for an extensive period of time last year so they can legally call them in any time they want. Of course, if they were to call them in now when the market is around 3 they wouldn't raise any money because no one would exercise them. But it is theoretically possible that they could decide to call them if the stock trade at $4. I don't think they will do this though. I spoke to Art Koch at the shareholder's meeting in April (I live in Ithaca, so it's not hard for me to get to the meeting) and he said that though they had the option to call in the warrants they would rather not call them in unless they had to. They wanted their investors to have a chance to make money off the warrants so they would only call them in reluctantly if they really needed to raise cash and had no preferable way of doing so. I think PRLN has enough money to fund it for at least 6 months to a year, so I'm not worried about them calling in the warrants. Will they extend the warrants for another year if their stock price does not go up? I don't know, but these warrants were originally scheduled to expire in Sept 1996. They've extended them once. Maybe they will again. Robin Messing

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