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

To: LLCF who wrote (483)	2/8/1999 1:38:00 PM
From: Dr. John M. de Castro	Read Replies (1) \| Respond to of 1386

Yes, I'm afraid that I am. I was appalled at what a rip-off these are of existing shareholder interests. They drive down the share value, dilute shareholder equity, and create a huge overhang on the market that can continue for months. I was focusing on the warrants at this time because they are what is maturing at the moment. Most if not all of the preferred share conversions have probably already occurred. Whether all of the shares have been sold, is still an open question. If you'd like to see the effects of one of these things as the conversion date comes up, take a look at ARIA. The conversion date for their floorless convertible is anytime after February 15. There is an active discussion on the ARIA thread of the effects of this type of financing on the share value and the kinds of stock manipulations that go on as a result. It's all pretty disgusting. I was very encouraged by the most recent financing arrangement for PARS. They may have finally matured beyond the point where this kind of shareholder rip-off financing is necessary. Best regards John de C