There is NO valid reason for IMGN to drop to the levels it has, except for the the entire market going downExcept maybe the Shire/BioChem variable convert warrants that expire on July 31st. The warrants are exchangeable for $11.1 million in stock, converted at the average of the five previous closing prices. These are sometimes known as "death sprial financing" because the holder can short 500,000 shares, causing the price to drop enough that the warrans are worth 500,000 more shares than before. So the holder can go around the spiral again, shorting another 500,000 and driving the price down enough that the warrants are worth 500,000 more shares. It's not known if Shire has been or will be aggressive in trying to maximize the shares and/or cash they will get for the warrants. Read the Nov 1997 SEC quarterly report, appendix 10.5 (I think), for more details on the warrants.
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