Spectral Medical Inc T.EDT

Terms of Debenture

[Accountprince]

It was described as a "bought deal" being done by Paradigm.  However, the disclosure now tells that Baxter picked up an undisclosed amount of the issue BUT with an amendment to the LAST milestone payment due to Spectral.  Public Shareholders are still in the dark about what the milestones from Baxter are.  So the last two debenture issues have amended the next milestone payment from Baxter and now the last milestone payment from Baxter too.  So Public Shareholders are in the dark about what we would have received from Baxter and also in the dark about what we'll now receive from Baxter.  Hard to tell if it's a good deal or not when you're in the dark about the moving parts.  But Spectral's due from Baxter in the future has been used as currency so these are not really bought deals.

Baxter has continued to put money in and we're still exceeding expectations for the 72 enrolled so far.  So we seem to be in a great position for the shareholders to finally get a payday.

Paradigm deal is still perplexing though.  They do a bought deal for $6.1 million if we'll get our customer to buy a stake (some/all?) in the issue - customer says yes but amends our last payout from them.  Not a very risky bought deal proposition for Paradigm.  In return they get US $273,180 cash (Cdn $371,416 cash at conversion of 1.3596) plus 928,539 options at $0.40 each.  If they exercise those options at $0.40 it will cost them Cdn $371,416.  Sweet deal for being in the middle as an arranger for some or all.  Just under a million shares basically for free - no need to reach into your own pocket.

[mercedesman]

Fair questions AP.   Paradigm made out like a bandit...again. At least you also see the bigger picture. MM

[hmmmmmmmm]

After Paradigm disclosed: "The analyst has a family relationship with an Officer/Director of subject company" Everything from their nonsense near term $4.00+ evaluation a few years back, to these finance deals have made much more sense to me...