Not trying to throw water on the parade, I bought FLNK when the CSCO news broke, but is important to keep the TK deal in the back of your mind.
----------------------------------------------------------
Effective April 26, 1999, FutureLink entered into an agreement with
Thomson Kernaghan & Co. Limited ("TK") to alter the terms and amounts of
outstanding securities held by TK on behalf of its clients. One of the
key terms of this agreement is to fix the conversion price of the
debentures at $0.20 per share rather than basing the conversion price on
a floating discount to market formula. In addition, the issuance of new
warrants and/or repricing of existing warrants to TK and its clients
will result in them holding a total of 6,000,000 warrants exercisable at
$0.25 per share. The Company will prepay a portion of these outstanding
debentures on or before May 26, 1999 for cash of $1,881,600 together
with common stock issued "at market" (based on a five day average of
closing bid and ask prices) to cover accrued interest, leaving
$2,500,000 principal amount of such convertible debentures outstanding
with a fixed conversion price of $.20 per share.
________________________________________________________________
The management bought shares at .30 a share but they are locked up for a year. (Wouldn't you love to buy stock knowing you were going to make these announcements.)
I don't know if the TK shares are locked up. If you don't know who Thompson Kernaghan is, you owe to your self to learn.
If your just in it for the flip than it probably doesn't matter but it wouldn't hurt to know who your dealing with anyway.
Best, daaan |
