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Biotech / Medical : Lidak Pharm. [LDAKA] -- Ignore unavailable to you. Want to Upgrade?

To: W. Damberg who wrote (925)	2/28/1998 10:54:00 PM
From: John Zwiener	Respond to of 1115

W. Damberg, I don't know if Katz made a sacrifice or not in selling 1/3 of his shares at a premium. I wonder though if HMED gets control, if Katz will get options or shares granted to him to replace the ones he sold. The board can't be called unfriendly since in TWO previous times, they have extended his warrants. If Katz would go ahead with a more conventional deal, and if this really turns out to be a great drug like we hope, then Lidak would see a large upfront payment and large royalties, plenty to fund his research. Plus, if some went down to the shareholders, the stock price would jump, and he could raise money that way too(2ndary offering). Now as far as this being nondilutive, I doubt it. I can name you companies that claimed nondilutive financing that absolutely blew away the shareholder. Who won? The financier. To me, nondilutive is when a bond is issued. In this case, we give away the company. By the way, it's pennivir.

To: W. Damberg who wrote (925)	3/1/1998 2:47:00 AM
From: luis a. garcia	Read Replies (1) \| Respond to of 1115

Will thank you for your clear thinking in these trying times. I hope it all plays out the way you have outlined it. Are you not concerned with the takeover rather than financing scenario? Why do share holders need to put themselves out in order for all these wonderfull events to occur and why doesn't Healtmed take the board at its word and make the financing deals up front so they can be properly reviewed and critized by the standing board...and oh by the way if they disclose to us the shareholders then we can also insure fairnes prevails in this scenario. Your model is from the heart and you may know more about dc Katz etc which helps you overcome this pitfalls we all seem to be floundering in...One of our friends discovery shows the Beverly Hills Lawyer that is been acting for Healtmed Mr Stein.. is a specialist in corporate takeovers.. also the discovery I did reading through SEC disclosures indicates Healtmed is intent on taking over Lidak.. not just financing... does that not concern you. regards luis