SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Ampex Corporation (AEXCA)
AMPX 11.32+4.7%Nov 28 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sam Sara who wrote (9553)6/26/1999 3:27:00 PM
From: Hal Campbell  Read Replies (1) of 17679
 
To add a little to Mike's explanation, David. the differences are in the way each class is treated. The 3 mil. shares have already been issued. Each share of the convertibles could be converted at the holders option into 500 shares of common at any of 4 or above. 10,000 x 500 x 4 equals 20 million. Most have already been converted ...by Fidelity et al...many sold...many still held. The redeemables follow a different schedule ...as Mike said. They will either be gradually filtered into the float ( or paid for in cash) over time-- quarterly installments - or redeemed at the company's option if ever they so choose. ( a likely course if the stock price ever gets high enough to justify it).
This deal replaces a structure in which , the moment they achieved positive book value, AXC would have had to dedicate any and all profits to repayment of 72+ million in debt. Bought time and flexibility. ( in an ingenious fashion in my opinion ). Again ( there have been MANY posts on this headache of a topic) if they succeed in their business efforts ...and the stock then rises sharply - and it will if they succeed - this debt will be about meaningless. If they don't, it will become an increasingly pesky problem. Simple as that.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News