<<Lumenon Innovative Lightwave Technology, Inc.
Clarifies US$35 Million Financing
In connection with the convertible notes, the investors also received five year common stock purchase warrants entitling them to acquire a total of 5,000,800 shares at a price to be established in 18 months. In clarifying the conversion price of the warrants, Lumenon said the investors will have the right to purchase shares of Lumenon at a maximum price of US$30 and a minimum price of US$10, based on the following formula: If the stock price exceeds US$70, the conversion price is US$30. If the stock price is under US$30, the conversion price is US$10. However, if the stock price is between US$30 and US$70, the conversion price will be the value of the shares minus US$30, divided by two, plus US$10.>>
So, instead of $60 converting to an exercise price of $40 it now converts to $25
Perhaps, in the glow of forthrightness that created this "clarification", the words "based on" in the first announcement could also be clarified.
<<The 7.5 percent interest bearing five-year notes are convertible into Lumenon common stock at a conversion price based on the closing bid price of the common stock for the five trading days prior to conversion, with a ceiling of US$25 and a floor of US$7.>>
Little by little all of the terms will be exposed.
Fred McCutcheon |
