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All, amended S1/a, makes for an interesting read. Items I have picked up so far: It seems to be the additional registration of the Series C preferred shares in a majority sense, about 1.85 million shares converted from the preferred shares. These shares are being registered now, but cannot be converted until March 1998. At that point, they can be converted into FTEL shares at the lesser of (a)$4.64 each, or (b) between 80-85% of the market value of the common based on closing prices around conversion. All this IF a FNET IPO has not happened by JUNE 30, 1998. If a FNET IPO happens before June 30, 1998, then about half of these, about 1.5 million, would be converted into FNET shares. If FNET doesn't IPO by July, the additional dilution could amount to a total of 6.7 mil more shares or a dilution of 42%, totalling about 22.7 million shares. About half, of 3.1 mil shares were already registered in the first S1, and we have seen some of the selling of those already. It would appear that Frank and Co. will have to do some great sales to offset these additional shares coming into the market, especially, beginning in March 1998. Anyone else get into this S1 yet??? |
