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Strategies & Market Trends : Temp. Home of Cooperative Group-Trading
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To: Mama Bear who wrote (371)6/24/1999 3:21:00 PM
From: Gerald Walls  Read Replies (1) of 790
 
No, that's the purpose of the ceiling and the 'lookback' clause.

Sorry to clutter the thread.

The lookback clause just wasn't part of the press release? Or is the press release misworded? The highlighted part appears to me to be the setting of the $5.55 conversion ceiling:

Under the terms of the debentures, interest will accrue at a rate of 9% per annum and the principal and accrued interest are due on December 15, 2000, if not sooner converted. In addition, commencing ninety days from the date of the agreement the holder may convert up to 15% of the original principal balance per month, on a cumulative basis, into Common Stock at a conversion price of $5.55 per share. The conversion price equals the average closing price of the Common Stock over the five trading days prior to the date of the agreement. If the market price of the Common Stock at the date of conversion is less than the conversion price, the Company shall have the option either to pay the holder in Common Stock at a fifteen percent discount to the market price or in cash in an amount equal to 110% of the principal amount to be converted (115% if conversion occurs after 210 days following the date of the agreement).
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