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Biotech / Medical : ATIS is on the move! -- Ignore unavailable to you. Want to Upgrade?

To: Marshall Teitelbaum who wrote (1618)	7/14/1998 12:29:00 AM
From: WWS	Read Replies (1) \| Respond to of 2205

Marshall, convertible notes such as the ones just issued by ATIS are not in the best interest of existing shareholders. Particularly troublesome is the provision that permits conversion at the lower price if the stock trades at less than 90% of the base price going into the conversion period. Holders of the convertible get more shares for their dollar at the lower price, hence more dilution. Two other of my previous biotechs, PRLN and TCLN, went through this trauma, both dropping 80% of their value in the process. Greg Wirth, writer for TheStreetCom, did an article on 3/31/98 about this "death spiral" with respect to TCLN. The steady decline in share value starts a few months prior to the conversion period. Best Regards, Bill.