FLOORLESS CASE STUDY - Enamelon Inc. (NASDAQ:ENML) Part 2.
This is why the Edgar database is your absolute friend. Note the amazing lack of news related to this very significant event in the history of this company.
biz.yahoo.com
dljdirect.com
I forgot the first indication of trouble - the S-8 filing, 12/18/98:
sec.gov
[edit]
Item 5. Other Events.
On December 18, 1998, the Registrant sold 500 shares of its Series B
Convertible Preferred Stock, $.01 par value, to three purchasers for an
aggregate purchase price of $5,000,000. Each share of Series B Convertible
Preferred Stock has a stated value of $10,000, plus an accrual amount equal to
6% per annum, payable on conversion in cash or the Registrant's Common Stock,
$.001 par value, at the Registrant's option. After February 28, 1999, holders
of the Series B Convertible Preferred Stock can convert it into Common Stock
at the lower of (i) the average of the five lowest closing sale prices in the
40 trading days immediately preceding the conversion or (ii) 120% of the
average of the closing prices of the last five trading days of February 1999.
The Company can require holders of the Series B Convertible Preferred Stock to
convert it into Common Stock at any time between March 1, 1999 and August 28,
1999 if the closing price of the Registrant's Common Stock on the Nasdaq
National Market exceeds 200% of the maximum conversion price for 20
consecutive trading days. After August 28, 1999, the Registrant can require
holders of the Series B Convertible Preferred Stock to convert it into Common
Stock if the closing price of the Registrant's Common Stock exceeds 150% of
the maximum conversion price for 20 consecutive trading days. Holders of the
Series B Convertible Preferred Stock will be required to convert it on
December 17, 2001, if they have not converted prior to that time.
[edit]
Alex
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