Semi--do you have any opinion on all this, I bog down
when I read this stuff, in the end it is always the
same, new guys getting in ever cheaper, dilution,
repeat. Or is it more complicated than that?
Sorry to be such a simpleton.
(from form SC TO-I Tender offer statement 05/10)
"In order to obtain the funds necessary to purchase the shares of Series A Preferred Stock and related Warrants that are tendered to us, we will be offering shares of our Series B Convertible Preferred Stock, par value $0.001 per share (the "Series B Preferred Stock") in a private placement transaction. We expect the Series B Preferred Stock will have many of the same terms as the existing Series A Preferred Stock, except that the Series B Preferred Stock will be classified as equity. The new series of preferred stock will be convertible into shares of Common Stock at a fixed conversion price that is based on the current market price of the Common Stock. The shares of Series B Preferred Stock will be sold to investors pursuant to subscription agreements, such agreements to be substantially similar to the Series A Preferred Stock Subscription Agreements.
(snip)
In order to obtain the funds necessary to purchase the shares of Series A Preferred Stock and related Warrants that are tendered to us, we intend to offer shares of our Series B Preferred Stock for $1,000 per share in a private placement transaction. We expect the Series B Preferred Stock will have many of the same terms as the existing Series A Preferred Stock, except that the Series B Preferred Stock will be classified as equity. The new series of preferred stock will be convertible into shares of Common Stock at a fixed conversion price that is based on the current market price of the Common Stock. The shares of Series B Preferred Stock will be sold pursuant to subscription agreements, such agreements to be substantially similar to the Series A Preferred Stock Subscription Agreements. |
