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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: LarryS who wrote (8555)	1/30/1999 8:42:00 PM
From: aknahow	Respond to of 17367

Agree current investors deserve to be told at least at the same time but XOMA can correctly claim that a DJ newswire release if disclosure to everyone. It remains to be seen if the financing really will be at a 60% premium to current prices. Unless the stock goes up more than that amount the firms that bought the stock, FOR REDISTRIBUION TO THE PUPLIC AND NOT FOR INVESTMENT, will get some of their stock at a 11% discount to the market in Aug 1999 and each 90 days thereafter. Still need to see the S.E.C. filing for all the details. We cannot infer any investor confidence in the provision of the $12 million. These firms will make a minimum of 11% in less than a year on their investment plus whatever the value of the warrants works out to. We still do not know if there is a floor on the amount of shares they can receive. I hope there is but am having trouble seeing how one could be factored into allowing the firms to purchase stock at a 11% discount from the future market price. I think there were other alternatives and I also think that the concept that XOMA"must" maintain a two years cash balance is something that gets in the way of making the best decision. With the trial coming to a close and the DSMB meeting for trauma I think they could have waited at least two more months. On the other hand, it becomes more and more difficult for a small $12 million dollar offer to depress the stock, even if the temporary holders try to engineer a decline. And in addition the conclusion of the Meningo reduces incentives to sell short. What I resent is that the investment bankers have figured out the whole world hates floorless convertible preferreds' so they have put their best minds together,<g> to provide the same equivalent thing, without having to use a preferred at all. Larry, what I am saying is, they cut out the foreplay and it was bif, bam thank you mam and it apparently takes longer for many to realize we were screwed! I am posting this, not to hurt the stock, but to assure XOMA understands how some of us feel. I believe that when the trial is concluded XOMA must disclose to us the total number of deaths and when unblinded for mortality, supposedly 10 days after the trial ends, this information also. Too bad that at a time we should feel upbeat it is difficult to feel confident that XOMA will do the right thing. I think they will, but am just not certain.