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Biotech / Medical : AHTC Corp (AHTC)-formerly Advanced Health (ADVH) -- Ignore unavailable to you. Want to Upgrade?

To: gcrispin who wrote (195)	6/6/1998 10:07:00 AM
From: Zebra 365	Respond to of 371

<<One question I have is what happens to the short sales? Do all the shorts stay with the parent company? That is my gut reaction. But the capitalization of the parent company is decreased. I hope someone can clear this up.>> I believe the spun off shares are treated as a non-cash dividend, therefore anyone short the parent company would have to pay that non-cash dividend to the person who bought the shorted shares. The company is only going to issue those spin off shares to the holder of record. Just as in a stock split. Remember shorting inflates the float but doesn't increase the liability of the company to pay dividends. Someone correct me if I'm wrong. Zebra