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Technology Stocks : JMAR Technologies(JMAR) -- Ignore unavailable to you. Want to Upgrade?

To: Richaaard who wrote (4870)	1/27/1998 5:38:00 PM
From: Bilberry	Read Replies (2) \| Respond to of 9695

Richard, I think if the warrants are extended, it would be for one reason alone. That is that JMAR needs money, a lot of it. The warrants will bring in 12.6 million. That would help offset the shortfall of the swiss deal. I have spoken with the company before about the warrants, and I asked them why would they extend. The reason is money, and that the fund raising mechanism is already in place. It is costly to mount a new campaign to raise money. As we have seen there are repercussions with raising money by private placement (shorting). So, if it were a choice between letting existing shareholders get the new shares or the swiss, I know which one I would vote for. Candle Stick, the dilution is bound to occur regardless, because JMAR will need money to launch all these product lines. We cannot guarantee the $7-8 price to occur in time for JMAR to raise money at. If it is a private placement, the price is always lower than the market price, so to get $7 or $8, the price of JMAR would have to be even higher (and would not stay there if the swiss deal is any indication). I was originally against warrant extension, now I am not so sure. This is not a no-brainer decision for management. --Bilberry