Mike,
You are correct about the IR 1,900,000 option being exercisable 1-1-98. If the price stays above $1.12, that would be a good date to be out of this stock.
The Series B convertible is referred to as 4% in one place and 9% in another. There is no mention made about the timing of convertibility except an interesting note about an extremely low conversion price for the first year ($0.75 max, if I read this correctly). The dividends look like they are being paid out in stock, not cash, at the company's option.
The Concepts acquisition was also partially financed by the issuance of an 8% convertible debenture which can be converted on October 11,1997 at $1.25. This is 1.2 million shares more potentially.
Even though this is a different company now, the loans are still outstanding, and it appears as though they'll be there for a long time. I wish I could borrow money that cheaply at someone else's expense (shareholders).
Forgive me about the BB reference. But the stock is still less than two bucks, and so that is my mindset.
There is some confusion about some of the other potential dilution. The only restricted shares are in the stock option program. It appears as though none of the other convertible shares are restricted.
I think your 10 million share estimates are reasonable, but maybe a little low, in the final analysis.
If you're confident about .30 at 10 million shares, the stock should go up somewhat from here. I hope it materializes.
I only post these items because I do not see anyone else doing so. It baffles me why there is no discussion about the financials, and yet everyone has an earnings "projection". There are a few more items I have questions about, but at the risk of being flamed, I'll keep them to myself. |
