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Microcap & Penny Stocks : Pharmos(PARS) -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (504)	3/30/1998 8:52:00 PM
From: yosi s	Respond to of 1491

Elliot Associate is a hedge fund, PARS raised money from them, There was also an article In Barrons a few weeks ago was not complementary to Elliot's associates,(Article was concerning junior gold mine exploration companies) My question is if they still hold any shares. They sold them short.. We shall see by the short intrest at the end of the month.

To: LemonHead who wrote (504)	3/30/1998 9:25:00 PM
From: arnie h	Read Replies (2) \| Respond to of 1491

Dear Lemon Head: Sure. Elliot Associates are the folks who gave us the $5M. Here's what section N of the agreement says. "N. Hedging Transactions. The company understands that some or all of the purchasers are so-called "hedge" funds and the company hereby expressly agrees that each purchaser shall not in any way be prohibited or restricted from any purchases or sales of any securities or other instruments of, or related to, the Company or any of its securities, including, without limitation, puts, calls, futures contracts, short sales and hedging and arbitrage transactions. Each purchaser acknowledges that such purchases, sales and other transactions may be subject to various Federal and state securities laws and agrees to comply with all such applicable securities laws in connection therewith and that such purchases, sales and other transactions will not be effected with the intention of reducing the price of the Common stock. Each purchaser agrees that it shall not transfer the Preferred Stock or Warrants to any third party unless such third party agrees in writing to be bound by this section 4.14." You can read into this what you want. I find it curious that an agreement should have to spell out the need to comply with existing laws and to avoid taking steps that would lower the stock price. I would note some of these folks operate outside the US. There is also an anti-dilution provision that is not to our advantage. Hope this answers your question. Good evening. Arnie H.