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Biotech / Medical : Hypertension Diagnostics Inc (HDII) -- Ignore unavailable to you. Want to Upgrade?

To: scott_jiminez who wrote (48)	1/7/2001 6:52:26 AM
From: scott_jiminez	Read Replies (1) \| Respond to of 120

The company announced last Thursday the issuance of a new class of Warrants (class B biz.yahoo.com in an arrangement intended to generate additional cash reserves. According to the CFO, and upon approval of the SEC (warrant B terms have not yet been specified), current holders of the class A warrants will receive, upon exercise of their warrants, 1 class B warrant in addition to a share of the common stock. Thus warrant A holders will acquire a 'free' class B warrant upon exercise of class A. The company has proposed this incentive to receive the cash from the class As as a relatively painless way to generate up to ~$15 million in cash (2.7 million class A x $5.50 exercise price) if all the warrants are relinquished. This is a substantial amount of cash for such a small company. However, even if a fraction of the warrants are exercised - which is a more reasonable expectation - the $3-5 million windfall would remain a significant catalyst towards aiding in the launch of the Profilor. This is an incentive program and not a warrant call. The class A warrants expire in 2002 and the warrants are callable only when the stock trades above $6.50 for 14 consecutive days. I asked the CFO (3X) if this offering suggested the company was pressed for funds to market the Profilor. The answer each time was a substantiated 'no'. In fact, the device was already being placed in physicians offices (where it is connected to HDII's office by modem to track usage and thus to compile billing). The potential additional revenue from the warrants would further expedite the marketing of the product; the absence of these funds would not hinder a process already begun. According to the CFO, and consistent with previous announcements and filings, the company remains on track for a significant increase in revenues and profits for FY2001 (end June). Consistent with these filings as well, these projections do not include potential income from the Profilor. Given the evidence that the Profilor has already begun to reach the physician, and the fact that the research counterpart to the Profilor (a device that is its virtual twin) is being used in at least 6 clinical trials where countless health professionals are able to view its capabilities, there's a reasonable assumption, IMO, that even these rosy income projections (http://biz.yahoo.com/prnews/001108/mn_hyperte.html) are conservative.