Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: David Sirk who wrote (576)	7/9/1999 6:22:00 AM
From: RockyBalboa	Read Replies (1) of 1438

The sales agreement with GEM Advisors Inc. is for a term of five years and the stock is convertible at the lesser of $1.00 per share or 65% of the average daily bid price for the five trading days immediately prior to conversion. So, David. When this is the relevant information regarding the conversion into stock, where is the floor? There is a "ceiling" at $1, hence the stock resulting from conversion can be valued at $1 at most - or "lesser", depending on the closing bid average. But the price of the stock used for the calculation of conversion shares could be $0.01 as well.

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