BTWS --
The more you read their 10Q, the more understanding you have of their recent PR effort:
In October and November 1999 the Company completed three private equity
offerings for approximately $2,100,000 (approximately $2,000,000 of net
proceeds). The investment was structured as follows. In the first offering the
Company sold 740,000 units for $740,000, each unit consisting of two shares of
common stock and two Series B common stock purchase warrants. Each warrant
entitles the holder to purchase one share of common stock at an exercise price
of $1.375 for five years.
In the second offering the Company sold 50,000 Series B convertible
cumulative preferred shares for $1,250,000. Dividends on the preferred shares
are payable at the rate of 10% per annum, semi-annually. Each of these preferred
shares is convertible into the Company's common stock or is converted into such
number of shares of common as shall equal $25 divided by the conversion price of
$1.875 per share subject to adjustment under certain circumstances.
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In November 1999, the Company completed the third offering by selling a
20% interest in a new subsidiary, Authentidate.Com, Inc. through which the
Company will market its new Internet service which allows for the verification
of the authenticity of digital images. In addition, the Purchasers were issued
999,999 Series C common stock warrants. The warrants are divided in three
classes of 333,333 warrants per class which have varying exercise prices
starting at $1.50 per common share and increasing over time after a Registration
Statement covering the underlying shares is filed.
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