Assuming that the price of the common stock of ADDN holds up, the holders of the Aladdin convertible debentures are also looking at a windfall. While there was $515,600 of convertible debentures on the books of Aladdin as of December 31, 1998, the PREM14C contemplates that $417,600 of the Old Aladdin convertible debentures would be converted into a like amount of convertible debentures in ADDN. The convertible debentures are convertible into 522,000 common shares of ADDN. Additionally, the holders of the convertible debentures were scheduled to receive 261,000 Class A warrants and 261,000 Class B warrants.
At $3 per share, the 522,000 common shares have a value of $1,566,000, the Class A warrants have a value of $391,500 [261,000 x ($3.00-$1.50)] and the Class B warrants have a value of $522,000 [261,000 x ($3.00-$1.00)]. Not a bad return. |
