[And Even More Re Soros]
Re: the cost of Soros' stock:
From the first paragraph in the Selling Stockholders section of the S-3 filing:
"...Of the 1,629,001 Shares offered hereby by the Selling Stockholders (1) 604,913 Shares represent a portion of the 741,913 Shares issued to the Investors in October and December 1996 in connection with the initial $10 million in equity financing provided under the Investment Agreement, (2) 600,000 of the Shares offered hereby represent shares issuable upon exercise of the Warrants, and (3) the balance of the Shares offered hereby [424,088; 1,629,001-604,913-600,000] represent the Shares to be issued in respect of the final $5 million in equity under the Investment Agreement."
So Soros has:
(1) 741, 913 shares that they paid $10M for, or a cost of $13.48/share.
(2) None yet (the Warrants are exercisable at $17.45 and $25).
(3) We don't know yet; from the next paragraph of the Selling Stockholders section: "The prices per share to be paid by the Selling Stockholders [Soros] for shares of Common Stock to be acquired by them pursuant to the Investment Agreement represent a 15% discount from market prices of the Common Stock over an agreed-upon pricing period commencing on delivery of the applicable Put Notice.... The initial Put Notice was delivered on October 24, 1996... and the Pricing Period related thereto ended on December 5 [six weeks later].... The second Put Notice was delivered June 3, 1997...."
It would thus seem to be to Amati's advantage, all else being equal, to keep their stock price just as high as possible until July 15th (assuming the same six-week period for this "put notice" as the last one); it would also be to Soros' advantage for Amati's price to be low during that period. (But of course neither side would even think of doing something between now and July 15th that might help Amati's stock price move their way just a teensy little bit, now, would they???)
(Also -- the reason that the S-3 was just filed was that Amati just exercised their "put option" for the last $5M of financing under the agreement with Soros.)
-- Walt Deemer |
