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December 29, 1995, as high as $38 a share during the quarter
ended March 31, 1996, and at $14.375 a share as late as March 17,
1997. Obviously, for many years, the market had been betting
(with varying degrees of optimism) that Solv-Ex would be able to
develop valuable technology, commercialize it, and eventually,
generate sales and profits; and despite its many difficulties
after Merrill Lynch’s sale of the pledged shares in late May and
early June 1997, at 1997 yearend Solv-Ex still retained its
technology, and Mr. Rendall remained guardedly optimistic that
Solv-Ex, by exploiting that technology, could overcome its
difficulties and attain financial success. The market, while
understandably cautious, did not entirely disagree, as evidenced
by the fact that the stock was still trading at $3 a share on
December 31, 1997. That guarded optimism as of December 31,
1997, based upon the potential commercialization of the retained
technology, was merely an extension of the optimism that had
always attended the market’s estimate of Solv-Ex’s prospects for
financial success. Investor faith in Solv-Ex’s technology
provided value for its common stock before December 31, 1997, and
it continued to do so as of that date. Moreover, after 1997, the
market continued to believe that there was at least a slim chance
of a turnaround for Solv-Ex, as evidenced in November 1998 by
Solv-Ex’s ability to raise $812,000 through a private placement
of 1,624,000 shares of common stock and 919,400 warrants.
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