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Biotech / Medical : GNBT Generex -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (35)	1/21/2006 10:58:02 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 310

Wanted to post the 8K and then my comments on it. Been reading the Yahoo message thread and it would seem that quite a few people are taking this as a negative. Would like to offer my take on it, and open it up for discussion. First, the price of the conversion from debentures to stock NOW explains what's been holding down the price of GNBT, despite the seemingly positive news of late. Rather than converting at the previously approved of price of 1.25, the conversion is now taking place at 1.05, which is STILL above the current public market price for the stock (1.01/pps) I see this as private investors placing a floor under the price of the stock at 1.05/pps. If I read the 8K properly, they must wait 181 days for their stock to be registered. Secondly, there are complaints that this placement was "dilutive". Well, that may be the case if you believe this stock price is undervalued, or you purchased your stock at a higher price. But given the current public market price of the stock, having an excercise price HIGHER than the public market price is actually ACCRETIVE. We can all be thankful (if my reading is correct) that this was not another floorless convertible debenture similiar to what other company's have issued when they are desperate for cash. Basically, the company just sold $4 million worth of stock at a price HIGHER than the current public market price. If I'm correct, this should continue to sustain the stock price above $1/share for the foreseeable future (unless the company has some terrible news event). I would be interested in your opinions? Hawk