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Biotech / Medical : Biotechnology Value Fund, L.P. -- Ignore unavailable to you. Want to Upgrade?

To: rkrw who wrote (3390)	1/23/2003 5:49:41 PM
From: scaram(o)uche	Respond to of 4974

Yeah, I know about Althexis. At the time, I was hot on the idea of private companies buying the floundering public. :-) :-( But I was wondering if the Maret deal gave him a 341/LKST/MLNM-like play that he had confidence in, making him feel like the stock price was secure. Why do I ask that? Didn't all of the Althexis stuff turn into dirt, soon after the merge? He had to know that? I've followed the story, but loosely. If I'm being silly, just say so. <vbg>

To: rkrw who wrote (3390)	1/24/2003 9:30:12 AM
From: Biomaven	Read Replies (1) \| Respond to of 4974

The $60M was in the form of convertible pfd shares exercisable at $3. I've scanned through the original sec filing and can't figure out how it became toxic. You made me curious enough to figure out what happened. The original deal was not, on its face, toxic. However, it contained a provision forcing immediate redemption if the company lost its NASD listing. This was about to happen because their net equity was too low. Hence they struck a deal to convert at a much lower stock price and so prevent de-listing. Peter