I would like to know what you all think about this guys latest posts. From a thread on AOL and he seems to know his stuff.
From: CasonWi
Chollow,
I find it very interesting that you didn't view this new bombshell within the report as disturbing.
On April 10, 1997, the Company completed a $1,250,000 private
placement of the Private Placement Debenture. The Private Placement Debenture
was sold at 100 percent of principal amount and bears interest at a rate of 9%
with interest deferred until the earliest of the date of conversion or April
10, 2000. The Private Placement Debenture is convertible, in whole or in part,
at the option of the holder at any time into shares of the Company's common
stock at a conversion price of $1.80 per share. Any amount not converted by
April 10, 2000 and related accrued interest will automatically be converted
into common stock based on the conversion rate. The Private Placement
Debenture was originally issued to Plymouth with the Plymouth Warrant, which
entitles its holder to purchase 694,444 shares of the Company's common stock at
a purchase price of $2.75 per share. The Plymouth Warrant may be exercised, in
whole or in part, at any time prior to April 10, 2002.
Isn't it interesting that you discovered these new debentures 3 months after they happened and only in a SEC filing. Wow! The new debenture holder gets to convert 694,444 shares at almost one dollar cheaper than Plymouth, the original holder. We do NOT at this time have any evidence that the company has stopped the conversion process of any debentures into MORE shares by outright purchase. In evaluating this company you must go on what the facts show you rather than what is stated by the company or others. The facts show that they are short on cash at this time which certainly does not bid well for those projecting outragious EPS of .10-.18 cents a share for last quarter.
Every company has negatives and most especially small BB companies. Many of these suprises and negatives may delay and sometimes destroy the results we want and expect from a stock. We appear to be currently stuck in the delay mode. |
