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sanosurfer

03/04/10 1:10 PM

#65 RE: nsomniyak #64

The price of warrants are set by the company and investors. The price does not have to be at .08 it is a purchase agreement between investors and company. The is a common stock purchase warrant if the investor decides to purchase the warrants at .08 then you will have dilution. My feeling is these warrants will be purchased, they more than likely have inside information and have protection rights as to the .08 purchase price. This is a large amount of shares folks, I did not expect this, lets do some due diligence together. They more minds together the better. Thanks Sanosurfer25
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Ecomike

03/04/10 9:55 PM

#67 RE: nsomniyak #64

The guys buying those units today at .07 share are expecting to sell for a higher price, and currently their new shares are not registered and can not be sold until they are registered. They may have further selling restrictions we do not know of, but they won't be selling for less than .07, so that sets a floor there. Also it increases the cash on hand by 500% or more (does someone know what cash on hand was?, it may be more like 1000% increase in cash). On going losses per share will drop due to dilution (looks good on the books to new investors). They now have cash they badly needed, and have added several items to the drug pipeline, at minimal cost IMHO. I am impressed with what they have done.

But as a wise man once said: "We will see" I doubled my shares today buying at .065, but what puzzles me is why the offer price sat unchanged almost all day today. Tomorrow may change this as people catch the news over night that do not day trade. I had my old shares on a sell order at .08 till this morning's news. I changed that sell order to .15 today, and bought more at .065.
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Ecomike

03/04/10 10:06 PM

#68 RE: nsomniyak #64

It is my understanding that they can buy those only for .08 which goes to the company, but I do not know if the stock must reach and hold a trigger price for a certain time first, which is common.

If the stock is worth .08, and all the warrants are converted at .08, the company swaps new shares for .08, when the existing shares are worth .08, where is the dilution? It improves the compnaies cash position and it future potential based on the improved cash.

The next question is what will the merger cost us!!!!! My guess is the merger will cost us about .01-.02 a share in real cost (stock dilution) wise for what we will get. I expect the creditors are going to take mostly stock in MHAN for Debt that is worthless with out the merger!

That ask/bid spread the last few days was a real joke. Some body that sold at .025 earlier this week must be real pissed by now!