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Microcap & Penny Stocks : EVDS Environmental Digital Services, Inc.
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To: Scott Andrew Smith who wrote (552)6/6/1999 7:34:00 PM
From: Andrew H  Read Replies (1) of 718
 
>>The conversion price is set at the time of distribution of funds, that being $.15 below the closing stock ask price that day. The funds shall be utilized as needed to finance continuing hardware and software engineering and manufacturing costs for its Capscan underground fuel tank monitoring and home heating oil tank monitoring systems.<<

You are right, it is not a floorless. Any ideas when the the funds will be distributed and who decides that? If estimate an average price for the stock of .45, then .15 below the closing ask is about a 33% discount, which is pretty hefty. If the stock goes down to .30, that represents a 50% discount, which is outrageous.

I am thinking of taking a position here, but if the ask goes down to .30 and the conversion takes place, that is an additional 33M shares for $500K. If the stock is at .45 and the conversion takes place at .30, then we are looking at an additional 16.6M shares from the conversion.

As I understand it there are not many more than 20M shares OS currently? Is that correct?

Seems like a steep price to pay for 500k. Hopefully the company has a plan to get the share price higher before they take the loan, if they are in control of the distribution of the funds.

Personally, I find the terms of the convertible less than satisfactory, but i suppose it was they best they could do. Is there any further explanation of the funding? Do we know if there is an anti-shorting clause?
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