Schopenhauer: From RNTK 10QSB:
the Company negotiated the placement of 200,000
shares of Series 1998-A Preferred Stock at $10.00 per share together with warrants to purchase 200,000 shares of Series
1998-B Preferred Stock and, at the option of the Company, up to an additional 600,000 shares of Series B Preferred Shares
at $10.00 per share; or a commitment by the purchasers of up to $10,000,000 in the preferred stock. As of February 10,1998
the Company has sold 200,000 shares of its Series 1998-A Preferred Stock at $10 per share. The net proceeds were
approximately $1,765,000. The Series 1998-A Preferred Stock pays a dividend of 9% per year and is convertible over 18
months into common stock at the lesser of the average closing bid price of the common stock for the five trading days
preceding the sale of the preferred shares, or 82.5% of the average closing bid for the five trading days preceding the
conversion of the preferred stock into common stock. The warrants provide for the purchasers, during the 18 months after
purchase of the Series 1998-A Preferred Stock, to purchase, and the Company to sell, 200,000 shares of Series 1998-B "
This is a floorless prefered equity if I have ever seen one.
Zeev |
