LUMM - Lumenon Innovative Lightwave Technology Inc. Message Board

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Technology Stocks : LUMM - Lumenon Innovative Lightwave Technology Inc.

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To: Peter Sherman who wrote (1953)	7/31/2000 9:43:06 PM
From: s-words	Read Replies (1) of 2484

Nice turn of phrase, but... Regardless of the various scenarios postulated here, and short-term effects on the stock price, I imagine the new investors would be pleased to exercise their warrants at a substantial discount to LUMM's share price 18 months from now. They're not expecting oblivion anytime soon, IMHO. In reviewing the default agreements, none of the Events of Default appear likely to occur with this financing in place. If one of them did occur, it would likely mean that the company was in such straits that the investors could have a difficult time getting back a substantial portion of their $35 million. They might have profits from shorting, and certainly whatever interest that had been incurred to that time. In the event of such a calamity, the bonds would convert to some number of shares at $.001 and the warrants would vest immediately. However, I doubt that they entered this deal with the intention of acquiring shares of dubious market value after a default. Surely there are more profitable ways to invest $35 million.

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