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Biotech / Medical : Neotherapuetics possibly has a breakthrough drug - NEOT -- Ignore unavailable to you. Want to Upgrade?

To: dalroi who wrote (86)	4/12/2000 9:12:00 AM
From: nigel bates	Respond to of 204

Sure looks that way. Shame, I had just started looking at this one. nig

To: dalroi who wrote (86)	4/17/2000 3:00:00 PM
From: Marty	Read Replies (2) \| Respond to of 204

I've tried to figure out how you see this financing as a toxic convertible situation. It seems to me that increased price shares are contemplated by both the lenders and the Company. They have avoided this in their previous financings and in fact, the same guys who are lending the money in this particular deal are the same ones who did the last one AND they passed up some shares they could conceivably got in order to make this deal with NEOT. Legally, I don't think the lenders can, say, short the stock and then deliver the shares they presumably would get when they convert the loan to shares. In this case, they own lots of shares from previous deals so they could sell them to drive the price down to replace them with cheaper shares but that doesn't make a lot of sense. I'm sure they want more shares as cheap as they can get them but what they really want is for all their shares to be worth more. If you've thought of some scenario I haven't been able to think of, please share it. I happen to think they are convinced that NEOT has the goods and the lenders think the stock is going to be worth a LOT more within the year. I also, without any specific information, think that the DD required to commit that kind of money gets you some insight and perspective into the tests results so far that the rest of us don't have. With this stock, the drug's efficacy and safety is everything.