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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: Cal Gary who wrote (13287)	2/7/2004 5:24:09 PM
From: padco	Respond to of 14101

As long as the "(possibly future underwriters)" are participants in the PP then they have no risk (zero) on their shorts, even if FDA approval comes during the financing. Cal Gary, I suppose it goes without saying that the above is true only if there is an agreement between the underwriter and the issuer for a PP at a particular price on a certain date. Otherwise, the underwriter is risking a serious short squeeze should an FDA approval come along. If you don't mind, here are some more questions about the mechanism of shorting. If the underwriter has not yet received his issue of shares from the company, then where are the shares borrowed from to effect the short. TIA