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Non-Tech : Any Stock Warrants

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To: Topper99 who wrote (77)	11/21/1997 5:51:00 PM
From: Richard Babusek	Read Replies (1) of 1916

My intentions are to asses risk. At the high end (of risk) you can easily have a warrant with 0 inherent value, approaching expiration. At that point the company has nothing to lose and everything to gain by extending the terms of conversion (either time, amount, or both). There must be some limits on what they can do, for example if a call has been issued (forcing conversion) and the stock takes a dive, the call may not result in any cash because the warrants become valueless. Can the company extend the time at that point? Is there any liability for those that may have converted before the change in the call terms? For example if the terms were changed from $8 to $5 conversion price (because the stock is at $7 with time running out) what recourse do those who exercised at $8 have (prior to price dip). Enough for one post, I'll discuss more next time. Ricardo

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