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Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: yosi s who wrote (468)	2/7/1999 8:56:00 AM
From: Dr. John M. de Castro	Read Replies (3) \| Respond to of 1386

PARS Decline - An Explanation The recent fast decent of PARS stock value concerned me and I wondered if it might somehow be related to the bottomless convertible of a year ago. These things often have some extras inserted that go beyond the conversion of the initial set of preferred shares. These shares should have been converted 6 months ago. However, in looking through the 8K filed on Edgar that describes the deal, I discovered that attached to each of the convertible shares was a warrant to purchase 100 shares. The warrants were exercisable on the first anniversary of the deal. The bottomless convertible financing arrangement was dated Jan. 30, 1998. That makes the first anniversary last week. If all of the warrants were converted there would be produced 500,000 new shares suddenly available for trading. Since, the holders of the bottomless convertibles have never been known to be long term investors, I suspect that last weeks decline resulted from these shares being dumped on the market. My disclaimer is that the 8K is long and steeped in legaleeze that I recognize is beyond my expertise. I'd appreciate any thoughts or other interpretations from others. If I am correct, there is a considerable overhang that may effect PARS stock value for weeks to come. Here's the link to the 8K filing, in case anyone has a few hours to look it over. sec.gov Regards John de C