X-Message-Number: 6504
Date: 12 Jul 96 02:15:53 EDT
From: Paul Wakfer <>
Subject: Re: Additional Share Purchases

In Cryonet #6492 Greg Stock wrote:

>One additional point: A few days ago Paul Wafker wrote something to the
>effect that pledgors would be allowed to increase their pledges in the
>future, and thus purchase more shares if they saw fit AT THE ORIGINAL SHARE
>PRICE. This would be a good idea if the only intent were to raise more
>research money for the project, but unfortunately (unless it is strictly
>limited by some mechanism such as issuing a specific number of warrants or
>some other such device) would undermine the possibility of the investment
>ever appreciating. The better the project performed, the more original
>investors would be diluted by additional share purchases from various
>parties, so the stock price would essentially end up pegged at its original
>price by new sales.

Yes, I was aware of the possibility of some such phenomenon. But there are
other conditions which I may not have stated before and which you do not
mention.
1) This privilege would only obtain until the end of the project. So the
share price would only be pegged until then by this process.
2) Again I wanted to give original pledgers as much incentive as possible.
Surely having a share price pegged for the length of the project is better
than having no project at all!
3) The way I see things happening right now, the company would not distribute
any profits and would not go public until the end of the project. As I
understand it until a company goes public all share sales are, in effect, by
the company, in the sense that a sale of stock between two parties external
to the company must be registered with the company and the shares reissued in
the name of the new owner. Furthermore, by clauses in the Share Purchase
Agreement, such external sales could actually be legally forbidden until the
company went public.
     The reason the I consider such things here which one would certainly
*not* want for a normal biotech venture is that *our* main purpose is not
monetary. If for example some very lucrative discovery were made at the
beginning of the project, we have no other choice but to trust the original
pledger/share purchasers to still continue with the project goal even if it
meant not making so much immediate money from that discovery (although this
may not be any practical restriction since the development and marketing of
that discovery could always be spun off to some other company with large
royalties to be returned to us). In any case, what I am trying to guard
against is a bunch of investors who are only out for *monetary* profit
gaining control of the company and abandoning the Prometheus Project.


>Good luck with Promethius!

Thanks.
I will need all the luck (and hard work) possible to accomplish this one.


-- Paul --

!!!!! REVERSIBLE BRAIN CRYOPRESERVATION *CAN* BE ACHIEVED IN 10 YEARS !!!!!

Paul Wakfer  email:        Voice/Fax:     Pager:
US:     1220 E Washington St #24, Colton, CA 92324 909-481-4433 800-805-2870
Canada: 238 Davenport Rd #240, Toronto, ON M5R 1J6 416-968-6291 416-446-9461
(currently in Canada)


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