Mike, massive dilution is coming:
Similarly, and at the special
meeting of stockholders held on August 6, 1999, our stockholders approved the
issuance of series D preferred stock and related warrants. As a result, the
series A-2, A-3, B-1, C and D preferred stock may be fully converted into shares of common stock, potentially at a discount to the market price of the common
stock on the date of conversion. Specifically, we anticipate that the series
A-2, A-3 and C preferred stock will be converted into 2,458,491 shares of common
stock in connection with this offering. Also, the holders of warrants issued in
connection with the preferred stock financings and the related exchange
agreement may fully exercise warrants for the purchase of our common stock at
prices that may be below the market value of our common stock on the date of
exercise. The total number of shares that may be issued upon those preferred
stock conversions and warrant exercises is currently 6,336,624 shares.
Regards,
Tom |
