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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (10696)	7/8/1999 11:30:00 PM
From: aknahow	Respond to of 17367

Peter, I hope you are right. However the market value fixed in the terms of the agreement was 60% lower than the initial conversion price when the agreement was signed. It was not an agreement for a premium over the market at time of conversion. So when the common is issued, I still think they are receiving 60% above the fair value of the stock when the agreement was made and that this leads to a taxable event. From the Ligand annual report, while the deals differ, and concern not convertibles, but immediate purchases, the premiums are calculated not above the market on the day of the purchase but on a settlement price derived over a past 15 day prior period. I viewed the XOMA event as similar differing only as to the time period involved. Again your business and legal background put you closer to this subject. I posted out of guilt for having complained about the ability of another company to manufacture earnings and having kept quiet about XOMA as it seemed like an event that would never happen.