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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Dennis V. who wrote (20651)7/25/2000 9:52:20 PM
From: mooter775  Read Replies (3) of 27311
 
FWIW, just because an investor purchases shares in a private placement and these are subsequently registered, it does not necessarily mean at all that the investor intends to sell these shares.

A private placement typically carries a 15% - 40% discount to market value depending on, among other things, the duration with which the security is expected to be held as a private, or unregistered security.

Registering shares subsequent to a private financing (or other corporate activity such as a merger) is a way to minimize or eliminate the private placement discount and give the shares the ability to be freely sold or margined.

So Aqua Wellington's registration of the shares does not at all mean that they are being sold currently or necessarily in the near future....

The procedure undertaken is a normal corporate financing activity.
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