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To: fishweed who wrote (31113)	9/27/2006 3:13:54 PM
From: Baton	Read Replies (2) \| Respond to of 48461

Fish: Under the terms of the PharmAthene merger with SIGA, there will be a reverse split. The ratio will be determined by the current SIGA SP. As PhamAthene will be a new company listed on the Nasdaq National Market, it will need to be $4 or higher. So if SIGA shares are $2, the split will be 1 for 2. There will also be dilution & a private placement. This is scaring lots of traders away. My feeling is that holders of the new company will now have 3 drugs ready for DOD contract. Of the 3, Protexia (nerve agent) just received 213M contract, but the next two (Valortim & SIGA 246) are also expecting DOD contracts. The Valortim contract will likely be in the 40-60M range as the DOD budgeted 300M for anthrax and has already given 2-3 other Anthrax contracts in the 30-60M range. The big one will be the 246 (smallpox) contract. I expect this contract to dwarf the Protexia contract. Since the SIGA 246 is a oral smallpox cure, production could start within weeks of the contract and provide a steady stream of income as the demand grows within and outside our country. There is lots of uncertainty and nobody can guesstimate the share price after the merger is completed. Due to this, there may be some great buying opps here. This is the way I see it unfolding: Proxy mailed by Oct 1. SEC requires 20 days. However, the merger is a done deal. During this time, both companies will release several updates. Look for SIGA to sell-off any drug programs that PharmAthene is not interested in. Look for eye popping data on SIGA 246 primate trials (This is all they will need for approval as FDA will not require human efficacy testing w/ smallpox for obvious reasons). Also expect Valortim contract from DOD. I can't estimate the SP by the early November merger date, but I would be disappointed if it is not over 2.50 ($5 after reverse). When PharmAthene takes over, it will be a much deeper company with big time investors, experienced management, new market makers and a formidable plan to be the number one bio-defense contractor as well as a major pharma company. One other thing. In reading the proxy, all shares owned by insiders and major investors will be locked up for up to 180 days. At that time, the effective float will be around 18M shares. With all health related mutual funds and institutions wanting a piece of the pie, that is when we will most likely see a big return. Baton