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Biotech / Medical : Neurobiological Tech (NTII) -- Ignore unavailable to you. Want to Upgrade?

To: JMarcus who wrote (712)	11/15/1999 1:42:00 PM
From: Dr. John M. de Castro	Respond to of 1494

Marc, Sorry that I took a while to respond. I was out of town and just got back. It always seems that NTII has significant movement only when I'm away. Maybe I should post to the group when I'm leaving :-) I don't like the dilution any more than any other investor. But, I agree with you that it was absolutely necessary. Bulletin Board stocks have great difficulty obtaining financing of any kind. So, we have to take what we can get when we can get it. However, I know for a fact that NTII actually had to turn down some investors. They filled the subscription and had to return over $400,000. IMHO this indicates how positively NTII's future prospects look. NTII might have gotten a better deal. But, in NTII's financial condition, they couldn't afford to chance it. So, I agree with the decision. In evaluating the impact of the dilution, remember that the shares and the warrants are locked up for a year. So, the float will not be affected for quite a while. Hence, positive news will result in buyers competing for a limited number of available shares. This should produce much more rapid stock price movement. Regardless of the dilution, the market value of NTII is still very modest for a company with a drug that addresses huge underserved markets in late stage clinicals. IMHO it is still way undervalued even at $2 1/2 and the dilution. Even with 15MM shares outstanding the market cap is still less than $40MM. I believe that NTII, at its current stage of development should be double that valuation and if the clinical results are as positive as I believe they will be, I believe that NTII should have a market cap north of $150MM. Best regards John de C