That is not a floorless, actually, when you have the potential of a forced conversion, you often find the stock well above the forced conversion price for the prescribed period, so, you can assume that sometime during December of next year, PALM will be well above $7, possibly another 20% premium. Right now, there is a similar situation with MAXF, where it would be desirable to have the stock well above $5, because there are about 750,000 warrants that would expire worthless (and bring no money into the coffers).
If you want a potential floorless, look at BPUR, they have an agreement on some $75 MM of "equity line of credit", and if they do not manage to get more traditional financing in over the next six months, it will be come a real floorless, of the leaky type ($3 MM/month leak, with shorting rights of course to the bandits). They had a normal equity deal brewing, but since they got some major FDA problems, that deal fell through. I believe the stock could get under $10 in a hurry....
zeev |
