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This had the effect of removing the liquidation preference that was overhanging the common shares. So that is exactly what Aradigm set out to do.Since the beginning of 2007, Aradigm raised $36.1 million by selling 33 million shares at $.95 each. Before the recapitalization, the company had just 14 million shares outstanding, so the secondary must have caused extremely mixed emotions in previous investors.

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