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

To: Harry Ehrlich who wrote (508)	3/31/1998 2:08:00 PM
From: arnie h	Respond to of 1491

Dear Harry: Your dilution question is a bit more complex since the agreement doesn't quite spell out conversion terms. It does have the following sentence though "The number of conversion shares issuable upon conversion of the Convertible Securities may increase substantially in certain circumstances, including the circumstance wherein the trading price of the common stock declines." Seems rather suggestive that it is to the advantage of the converter to have quite a low price at the time. The company management should have fun trying to keep the price up at the time of conversion. Hope this answers your question, Regards, Arnie