Rentech(RTK) - gas-to-liquids and cleaner fuel Message Board

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Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel

RTK 0.200

+5.3%

Oct 13 5:00 PM EST

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To: Andrew H who wrote (1267)	2/19/1998 9:40:00 PM
From: Zeev Hed	Read Replies (3) of 14347

Andrew, I have reread very carefully the 10QSB. There are $2,000,000 of the preferred A and a "possible" additional $8,000,000 of the Preferred B. The preferred A have a ceiling of the last 10 trading days prior to the sales of the convertible and are absolutely floorless (actually 17.5% discount to the last 5 days trading closing bid). The B, apparently have no ceiling (or at least none is mentioned in the 10QSB) but are just as floorless as the preferred A. There might be a covenant forbidding arbitrage in the common stock against these preferred, but if such exists, it would be a good idea to bring the text to the thread, since the 10QSB contains no language forbidding the engagement by the holders of the preferred in arbitrage activities involving the commons. So far, I have seen only one case where floorless have an anti arbitrage covenant (AIPN). I wish this covenant would be used more often. It does not prevent completely the holders of the floorless shorting (they can use off shore accounts) but it limits their agility in mounting "short raids" on the stock prior to their intended conversion. Zeev

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