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Microcap & Penny Stocks : MIDL .... A Real Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: Ga Bard who wrote (225)	11/7/1997 11:14:00 AM
From: MSo	Read Replies (1) \| Respond to of 7039

Gab, 225; Sorry I didn't respond until today. I did get a call this morning from Mark Pearce, attorney for Midland about my warrants questions from May filing. He conceded that the language was broad, but that he didn't draft it, and that the company wanted flexibility, if it considered lowering the strike price in its best interests. He wouldn't comment on what impact the drop of the strike price would have on the price of the warrants, but, like you, I agree it generally would be nuts to do that to the base of the investors, where it would automatically diminish the value of the warrants. My experience is that companies do not do this generally, (for me recent rise in Focus Enhancement warrants were left alone far above strike price}; however, on a penny stock with little history and language so broad, I was concerned. Pearce seemed straight forward, and anticipated no action by the company, and had not encountered such a lowering of the strike price in his past dealings with other companies. Again, as I said before, at this price , there is no problem. As the price rises, and the value of the company is enhanced, and has no financial problems, as a practical matter, no action, harmful to investors, would probably be taken. I was just raising a question, most likely unreal, for discussion. Thanks for the input here and all your other suggestions on other stocks and your investment philosophy. Mike