VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Zeev Hed who wrote (25461)	3/15/2002 10:29:15 AM
From: Larry Brubaker	Read Replies (3) of 27311

Zeev, the discussion of the Berg financing reminds me of the last time he provided funding through equity instead of debt. During the last half of 2000, VLNC and Berg had an agreement whereby VLNC could "put" shares to Berg (at any time VLNC chose to do so) at a discount to the market. They had several chances to sell shares to Berg above $20 during the last half of 2000. Instead of taking advantage of this opportunity, they announced a new $30 million financing from Berg in February, 2001, in which shares were sold to Berg at a discount to the market on December 20, 2000. December 20, 2000 happened to be the 52-week low at the time. I found it quite interesting at the time that they could announce a deal in February that was based on the (52-week low) market price in December. And there was a marked drop in the share price in the days leading up to December 20, So instead of selling shares to Berg for $20 or more, he got his shares for about $9. finance.yahoo.com Of course, the fact that VLNC went on to make new lower lows shortly thereafter may be the reason why Berg isn't willing to commit $30 million at one price now.

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