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Shero and Davis
I went back to the 10q and reviewed the S-3 done in August.
This was a $12,000,000. placement with the following conversions.
Nov 26, 97 through Jan 26, 98. 13% discount
Jan 26, 98 through Mar 26, 98. 20% discount
Mar 26, 98 through May 26, 98. 22.5% discount
May 26, 98 through Jul 26, 98 25% discount
Jul 26, 98 27% discount
The discount is figured on the average LOWEST TRADING PRICE of
the stock 5 days before each conversion date.
What if the want to drive the stock down for the conversion price
next week?
Lets do some calulations
Average lowest stock price for 5 days before Jan 26 is $1.00
$1.00 x .80 (conversion)= .80 a share conversion
$12,000,000. divided by .80 a share = 15,000,000. NEW SHARES.
Our company has I believe with/out options 27,669,614 shares
outstanding.
Plus there are warrants exercisable at 110% of the convesion cap.
I do not know if this is 1,500,000 or 16,500,000 addtional shares?
Just some thoughts on what might be going on.
Jerry Davis |
