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Biotech / Medical : Neurobiological Tech (NTII) -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (492)	4/19/1999 3:24:00 PM
From: BRAVEHEART	Read Replies (3) \| Respond to of 1494

Hi Peter, I am assuming it is a fixed common with warrants. I seriously doubt it is a veriable preferred. Last year it was fixed at .55. My guess is it was again close to .50. The key here is there are not going to be any clinical results until Sept-Nov. The company will need funds again before then. The last time we found ourselves in this situation the company did an inhouse financing and then closed the MERZ deal to fund operations till now. This looks like the most likely scenario once again. Hence I anticipate some sort of Pharma deal before July. I also expect around $5 million up front to NTI in this deal. I recently dug up an article whereby NTI was looking for $6 million in funds. We have the first phase. Let's face it insiders are closest to this situation. I cannot imagine they are risking their personal funds for a low probability event. Today put me much at ease. I am satisfied with this recent funding of operations. --------------------------------------------------------------------- In fact Peter I just called Paul mid-message. The shares are at a unit of five shares for a fixed $2.50 + 2 warrants at a strike price of $1. Hence at .50 cents a share + the warrant rights. The holders must wait a year before converting. Hence I see this as a fair consideration based on the amount of risk one assumes over the next year relative to clinical results. Al-be-it the clinical risks are a much lower risk IMO than typical clinicals. There is risk none-the-less. Personally I think this is a fair shareholder friendly & responsible form of financing. BEST WISHES Jeffrey