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Biotech / Medical : AFFYMETRIX (AFFX)

AFFX 14.01

0.0%

Apr 1 5:00 PM EST

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To: Richard Haugland who wrote (633)	3/10/1998 5:03:00 PM
From: gerald tseng	Read Replies (2) of 1728

Huge news! Glaxo to buy $50 mil preferred stock of AFFX with a conversion price of $40/sh. They pay $30.58/preferred now! What a endorsement!! I was wondering what happened after AFFX decide to pull the 2ndary offering last year, and now we got this!! Interesting! If you look at the stock price when they decided to pull off the 2ndary, it was at around $32, which co. obviously think is too low. Now AFFX has traveled down to $24 and back to $30. and got got the deal at current price and pay 6.5% interest (low compare to line of credit from the bank) and convertable at $40, which seemed to me is a good compromise between AFFX's original expectation $40 in 10/97, and the current market price. The reasaon AFFX gains strongly is: 1. They were able to raise the capital they need without flooding the market with new shares which will depress the share price. 2. The need for manufacturing expansion must have reached a point where they can not delay it anymore. Just my 2cents.

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