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Gold/Mining/Energy : Inflazyme Pharmaceuticals (T.IZP) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Schommer who wrote (1200)	3/19/1999 6:55:00 AM
From: Harold Lehman	Read Replies (2) \| Respond to of 1501

I spoke with Jeff Bacha about the Class A Preferred on Tuesday. When I asked about why such a large number would be authorized he told me it was to insure flexibility in case of another joint venture deal, an example he mentioned being with IPL 423, an anti-allergy drug candidate. My concerns were also about potential dilution with this large number of authorized shares, which are convertible to common after issuance, so more questions were asked about potential scenarios, mine, not his, so as not to put him on the spot too much. Basically what everything evolves to is that, since the number of shares issued from the authorized stock is predicated on Inflazyme's share price, the higher its price, the less issued. In fact, the 50 million authorized Preferred Class A shares may be gross overkill, just as is the authorization of huge amounts of common shares authorized at many companies' creation. This large amount of Preferred to be authorized may just be standard procedure, pro forma, and it is needed for the company to complete its deal with Hoesch and to enter into other deals. I was concerned as well when I first read the proxy, but you could see the stock price react positively yesterday, which would probably be the day after the very last people received their proxies through the mail. Regards, HL