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Biotech / Medical : ID Biomedical - Elephant Hunting?? (IDBEF) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (18)	2/9/1999 3:31:00 PM
From: Ignite44	Read Replies (1) \| Respond to of 27

Steve, Here's what I put together from reading press releases. These warrants exist as a result of IDBEF raising capital by selling ownership in the company about a year ago. Here's a quote from an October 97 press release: "Vancouver, Canada - ID Biomedical Corporation (IDB) announced today that an agreement for a private placement of up to CDN $6 million has been reached between the Company and its agent, Dlouhy Investments Inc. The placement will consist of up to 1,500,000 Special Warrants at a price of CDN $4.00 per Special Warrant. Each Special Warrant will be exercisable, without additional payment, into one Common Share and one-half Common Share Purchase Warrant. One Purchase Warrant and CDN $4.25 will entitle the holder to purchase one Common Share until one year from the date the Purchase Warrants are issued." As I understand this, a year ago the investors gave IDBEF somewhere in the neighborhood of $6M in return for 1,500,000 special warrants. Each special warrant could be converted into 1 common share (from IDBEF, not the marketplace). In addition each special warrant entitled the holder to 1/2 purchase warrant. Each purchase warrant + $4.25 allows the holder to buy another share of common from IDBEF. So, 1,500,000 special warrants could be exchanged them for 1,500,000 shares of common stock plus 750,000 purchase warrants. With the 750,000 purchase warrants, the holder can buy 750,000 more shares of common stock at $4.25/share from IDBEF. My interpretation is this means someone is holding up to 750,000 purchase warrants that were going to expire Feb 9 because the stock price is below $4.25 canadian. IDBEF needs capital and would like to sell more shares of stock at $4.25 so management got the deadline extended a month in hopes that announcements will drive the price up and whoever owns the warrants will have an incentive to pay IDBEF $4.25 per share. For existing shareholders .... more dilution! That's my take on it....