I think this post gives a good indication of what is happening to the share price:
Message 3242839
Excerpts from Form S-1/A for FRANKLIN TELECOMMUNICATIONS CORP filed on Jan 22 1998:
From time to time the *********Selling Shareholders may engage in short sales,
including short sales against the box********, puts and calls and other transactions
in securities of the Company or derivatives thereof, and may sell and deliver
the shares offered in this Prospectus in connection therewith or in settlement
of securities loans. If the Selling Shareholders engage in such transactions,
the market price of the Common Stock (and, accordingly, the conversion price
of the Convertible Preferred Stock) could be affected. From time to time the
Selling Stockholders may pledge the shares offered by them hereby pursuant to
the margin provisions of its customer agreements with brokers. Upon a default
by the Selling Shareholders, the broker may offer and sell the pledged shares
from time to time under this Prospectus.
The Company is authorized to issue 10,000,000 shares of Preferred Stock,
issuable in one or more series, each with such designations, preferences,
rights, and restrictions as the Board of Directors may determine. In accordance
with such authorization, the Board of Directors has designated 740 shares as
Series C Preferred Stock, of which all 740 shares are issued and outstanding.
The Series C Preferred Stock is not redeemable, and has no dividend preference.
Each share of Series C Preferred Stock has a liquidation preference of $10,000
per share, and accrues a premium at the rate of 8% per annum. The Series C
Preferred Stock has no voting rights, except as required by law, and is
convertible into Common Stock commencing in March 1998 at a conversion price
equal to the lesser of (a) $4.64 per share or (b) between 80% and 85% of the
fair market value of the Common Stock, based on closing prices during a
measuring period prior to conversion, ********with a minimum of $1.00 per share**********. The
Series C Preferred Stock is automatically converted into Common Stock in May of
1999.
I've resigned myself to figuring out how to buy more shares at about $1.25, in the event news or a "white knight' does not show up to save the day. Is there anything else to be done? |
