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Biotech / Medical : Antex Biologics (ANTX) -- Ignore unavailable to you. Want to Upgrade?

To: BK who wrote (823)	4/3/1998 3:01:00 PM
From: Mark F. Beno	Read Replies (2) \| Respond to of 1476

Well, what a difference a few weeks make. Four weeks ago I thought, for the umpteenth time, that Antex was finally going to make a move towards what I and others perceive to be its true value. The web page was up and looked good, the 10K came out which clearly outlined the progress Antex was making in all areas as well as announcing an expansion of space from 15K sq. ft. to 25K sq. ft. Now all we needed were some of the trial results and we'd be set, right? March 24th rolled around (coincidentally the day the unit purchase option time period began) and on that day we entered into what I am clearly going to call the manipulation phase of Antex stock trading. Starting on that day, and continuing today, there exists a pattern that clearly reeks of manipulation. On the 24th we started seeing a bid/ask of 1x1.06 and 1.04x1.049, etc. Less than a penny spread? You've got to be kidding me! And on it went: 1.01x1.03, 1x1.03, 1x1 1/32, 15/16x0.98, 15/16x0.99. Now were stuck at 15/16x1. Funny how we're not allowed to get past 1, isn't it? Now, only one week after this manipulation began, the company has filed for shareholder approval for a reverse split on June 9. This stock should have gotten to $4 on its own merits and the company should not have to resort to a reverse split in order to prevent manipulation by market makers. While a reverse split might help Antex get analyst coverage and get listed on Nasdaq, I doubt that it will be very beneficial for current shareholders in the short run and maybe not even in the long run (unless we are talking about 4 years down the road). To what end will a reverse split help the company? Of course, a secondary offering at $7.50 a share would certainly help financially, but the company is hardly cash poor and still could reap an additional 3 million over the next 2 years with this ridiculous unit purchase option that lies out there on the table. (By the way, does anyone really think that Barington Capital is going to publish a favorable research report on their web site? Has anyone taken a look at their outdated web site?) If two years from now, with phase III campylobacter trials and phase II helicobacter completed and FDA approval imminent for the former vaccine, the stock was still at $1, then maybe I could stomach a reverse split. But a reverse split now, when the company does need the cash that might be generated from future actions, is clearly unwarranted. For those that say Antex is different, well yes I believe that is true. Long term I still believe this will be a very profitable and successful company. However, despite all the proclamations from management that they have shareholders best interests in mind, I feel that if they truly felt this way then they would be asking for a SEC investigation immediately rather than proceed with this reverse split nonsense. I have said goodbye to my Antex shares for now, since I can only see the value declining over the next few months in anticipation of the reverse (and since I can only stand to lose money in an up market for so long), and will be writing to both the SEC and Dr. Esposito regarding ANTX stock manipulation. Regards, Mark Beno