.. . . . . . . IMPORTANT INFO ON LPTHW & LPTHU. . . . . .
To all those wishing to convert LPTHW or LPTHU. . . .
There are a few things you must know.
1. Do not wait. LPTHW must be converted by February 9th!! [And LPTHU contains a LPTHW]. Your brokerage must have sufficient time to convert prior to the deadline. Many brokerages have set deadlines of this week!! And these are complicated conversions, so they need time to figure out what it is they are doing.
2. Be sure your brokerage is converting properly. . . DO NOT ASSUME!!
3. LPTHU converts to 1 LPTHA, 1 LPTHZ and 1 LPTHW. . . .however, since it includes LPTHW, which has been called, there must be further conversion. You do not want to be holding a package of stock, whereby some of it becomes worthless. . . .I am converting LPTHU, then converting LPTHW. .
4. AFTER you have received your conversion, be sure that you do not have more Class A [LPTHW] warrants in your possession that would require further conversion. You should have LPTHA and LPTHZ only [since LPTHU would not be smart to hold, having a share of LPTHW in them that will be worth a nickle after Feb 9.]
5. There are already reports of confusion and mistakes in converting the Lightpath warrants. . .by the brokerage houses. . . it is YOUR job to make sure they do their job properly. Stay on them until they do.
. . . A. . . .1 LPTHW [Class A Warrant] + $6.50 = 1 share LPTHA + 1 share LPTHZ.
. . . U. . . .1 LPTHU [Unit or "bundle" or warrants] = 1 LPTHA + 1 LPTHW [which needs to be sold or further converted immediately!!] + 1 LPTHZ
. . . B. . . . . . .As I understand it. . .LPTHZ [Class B Warrants] will continue trading for 1 year, until 2-22-01 . . [not certain as to whether it is convertible between now and 02-22-01]
When converted, 1 LPTHZ [Class B Warrant] + $8.75 = 1 share LPTHA
Under some jurisdictions, your class A [LPTHW] cannot be exercised unless the common stock and the class B [LPTHZ] warrants are registered or an application for exemption is filed with & accepted by the state securities authorities. Contact your broker for further details on conversion. If in doubt about the way your broker is handling conversion, you may contact LightPath directly at:
Donna Bogue, VP Finance
LightPath Technologies, Inc.,
(505) 342-1100 -- Telephone
(505) 342-1111 -- Fax
Email -- dbogue@light.net
NOTE!!!
It is important that you contact your broker immediately if you wish to convert. Do not hesitate.
It is great to convert and to accept physical certificates, which can be put away for long-term. . . . HOWEVER, if you are unable to convert prior to the deadline of February 9 at 5:00pm. It is important to sell the LPTHW and/or the LPTHU [which contains a LPTHW], so that you are not STUCK cashing them in for a nickle a share on 02-22-00.
After 5:00p.m. EST on February 9, 2000, the class A warrants will no longer be exercisable, and holders will have the right to receive only the redemption price of $.05 per warrant.
I realize this is rather confusing. . . but I believe the above info has about everything you need to execute conversion.
Rande Is |
