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Biotech / Medical : Paracelsian Inc (PRLN) -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan Schonsheck who wrote (3622)	5/17/1998 11:02:00 PM
From: Jonathan Schonsheck	Read Replies (1) \| Respond to of 4342

Conclusion of PRLN Annual Meeting At the close of the meeting I commented that, in a clear sense, Paracelsian is a company that is only three months old. And without the Biomar buyout, it is likely that Paracelsian would have gone bankrupt, and our shares would be worthless. In sharp contrast, we own shares in a very exciting, albeit a "new" Company. Our future is bright-far different than it could easily have been. I thanked Colin and Nelson for their efforts, and for their dedication to the stockholders of Paracelsian. That others endorsed this gratitude was shown by a long round of applause. This exhausts my notes. If there are questions, I shall (attempt to) respond to them as time and energy permit. In my judgement, 1997 was a nightmare for Paracelsian. I continue to hope that those responsible for that nightmare will suffer as appropriate. And yet-well, that which attracted us to Paracelsian endures. I am (well) past offering investment advice. But the quiet confidence of Bernie Landes, and the new Board of Directors, is inspiring. Jonathan

To: Jonathan Schonsheck who wrote (3622)	5/17/1998 11:04:00 PM
From: Elllk	Read Replies (1) \| Respond to of 4342

Jonathan Thanks for the meeting update especially in the face of your heavy schedule. I like the sound of "no competitors" for the functional assays and I am pleased the new management continues to be open and eminently sensible in their approach. They have established a totally different atmosphere. A refreshing one. And a deal with Nature's Way would sure have them moving nicely in the right direction. St John's Wort, echinacea, etc. are also good targets. I am sure after EntreMed that AndroCar and AndroVir are not on the back burner now, though I wonder if they got caught napping a little on that one. On the shares, many companies have authorizations way above the extant number of shares. I'll take the increase as a sign of optimism. All said, it is nice to have a management that is open and responsive and showing some initiative and creativity in their approach and implementation of a real plan. Thanks again for the update. Larry PS Apparently I was writing my response while you were putting in your last update. I didn't realize there was more to come and you must have just beat me to the post. It sounds like a good and appropriate ending to the meeting. And you can see that I agreed with your conclusions before I read your last post.

To: Jonathan Schonsheck who wrote (3622)	5/18/1998 1:30:00 PM
From: John H. Farro	Read Replies (2) \| Respond to of 4342

Jonathan, thank you for taking time out for your excellent posts. You've gone above and beyond the call of duty. I'd like to add a further comment on the issue of dilution. You wrote: Another line of questioning concerned the "dilution" of our stock by the authorization to issue an additional 15 million shares. Nelson Campbell commented that there is in fact no dilution if the issuance of stock results in a Company that is worth even more. In that these shares are necessary for the infusion of an additional half million dollars of working capital, there is no real dilution. ((Another editorial comment: this is an authorization only; it is not as if that many shares will be sold soon. Furthermore, the shares that go to Biomar are restricted; they cannot appear on the market without notification. [But why would Biomar sell shares anyway, reducing the value of the remainder of its vast holdings??])) We all expected the stock price to increase last February when John Babish presented the company's plans to launch AndroVir at the Smith Barney conference. There never was much of a boost and the price actually fell within a few weeks of the presentation. Part of this drop in price was probably caused by the company's failure to follow through and hire an AIDS doctor as promised, but at least some of the price drop was probably caused by Babish's stock sale. His stock sale pushed the price down in two ways: 1) By selling his stock there was more stock available for other buyers, thus depressing its price. 2)Other stockholders became worried that something was wrong with the company. Whenever an insider sells a lot of stock investors get the jitters, causing them to sell stock and thus lowering the price. Colin Campbell must be well aware of this. He must be aware of what would happen if Biomar were to dump a lot of stock on the market soon. Therefore, I agree with you that their dumping of stock is highly unlikely. I think Colin Campbell was aware of the dangers of stock dumping over a year ago. This is from Babish's defense which I posted last August: www4.techstocks.com 19. On or about February 26, 1997, T. Colin Campbell (who was then a Board member but who has since resigned) spoke with me and asked me to stop selling shares. I expressed to him my frustration over the contract discussions, and he said he would see if he could push the discussions forward. I respected Mr. Campbell's request, and I did not sell any more shares until after my resignation was made public. I also told Mr. Koch that I had stopped selling shares. Dr. Campbell was against Babish's stock sale, probably because he realized it would hurt the company. Not only did he oppose dumping back then, but as far as I know he held onto all his stock even through the darkest days when the company looked like it was going down the tubes. I would be very surprised if he were to sell his stock before we see an appreciable price rise. Robin Messing