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Technology Stocks : Quarterdeck: Making a Striking Comeback!
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To: Vladimir who wrote (1793)11/20/1997 10:51:00 PM
From: Mike  Read Replies (1) of 3307
 
V,

The list came from the Reg S filed with the SEC. View it at freeedgar.com .

They are a list of the preferred shareholders who can covert their preferred shares into common shares. The catch is that the number of common shares that they receive is dependent on the price of common stock. For instance -if the price 2 1/32 (today's close), each share of preferred stock is converted to approximately 492 shares of common stock. (1000/2.03125 = 492) However if the stock price is $5.00 they would only recieve 200 shares of common stock. (1000/5=200)

So, until these share are converted it is in thier best interest that the stock price remain low. It is important to note that the conversion price will be $5.00 until March 1998. Then, the conversion price will be the average of the daily low for the preceeding 22 days prior to the conversion date.

This means that if the people on the list can keep the price around $2.00 for the 22 days prior to March '98 they can convert and receive boucoup shares. It is also important to note that they can convert the shares anytime between now through the year 2000. Who knows if they will all convert or when they will deciede to convert? My guess is that a large number will try to convert their preferred shares if the price remains low between now and March '98. They can convert for around $2.00. It doesn't get much lower than that.

Mike.
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