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Biotech / Medical : ARIAD Pharmaceuticals

ARIA 23.99

0.0%

Feb 17 4:00 PM EST

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To: rkrw who wrote (468)	2/7/1999 1:57:00 PM
From: Dr. John M. de Castro	Read Replies (2) of 4474

The shares were registered but they weren't converted. Take an hour or two of light reading and read the 8K. ARIA is required to register the shares within a month of the closing. They had to register 6 million because it is unknown at the time how many shares will be needed to cover the convertibles when they are converted. The series "c" shares cannot be converted at the variable price (90% of the average low bid days) until Feb. 15. If they convert at that time they have to pay 100% of the maximum price. I am not indicating conspiracy. I'm simply noting that it is in the best interest of these "investors" to short, drive the conversion price down, convert the shares at a bargain basement "Conversion Price" and then cover their shorts with the converted shares. If I were them this is exactly what I would do. It is exactly what has happened with other companies that have used bottomless convertibles to raise cash. Whether you believe me or not is irrelevant. The price action of ARIA over the next week will tell whether I'm right or not. Best Regards John de C

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