Catalyst Pharmaceutical Partners (CPRX)

[bellweather1]

Don,

Thanks for all that financing hx.

I don't think the co specifically misrepresented his intentions on the 8K.

But, after he took the action(and they were unable to independently verify his motivations), it would only make sense for them to accept and restate his contentions.

In other words, although he may very well have had a private investment to finance, and he may have enlisted the cooperation of an existing institutional investor in the transaction, I'm still inclined to think he knew this was coming.I.E.since borrowing rates are so low these days (if you have decent credit), why would one dump such a large position at such a low price, unless you wanted to avoid something like this.

My other issue is, since they've never resorted to warrant issuance before this, why would they now?

Kind of speaks to a measure of desperation to me.

In any event, I currently have an order in to purchase at 1.00/share now, which could get filled the way things appear to be going.

I'm inclined to think it's because the prospect of warrant overhang is weighing heavily on the stock.

From my experience with Ariad and other stocks it represents a concern for me(both in terms of the greater potential for stock manipulation it affords, as well as why they needed to resort to it at all-again, suggests a measure of desperation).

Thanks again for the feedback.

bw