The New QLogic (ANCR) Message Board

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Technology Stocks : The New QLogic (ANCR)

QLGC 16.07

0.0%

Aug 24 5:00 PM EST

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To: trendmastr who wrote (14648)	2/23/1998 7:38:00 PM
From: janski	Read Replies (2) of 29386

The formula has a huge built in penalty for converting at a first chance they get which is 4 months from now. The penalty becomes less as you get close to 12 months at which time it goes away. There are other conversion rules for the first 12 months which only allow them to convert small portions a month and only even a smaller portion allowable it their convertion price should be less than the market price. The details on that are quite convoluted but that appears to be the bottom line. The maximum conversion price is 13 if the stock closes on average above 8.50 for the next 30 trading days, it goes down to minimum of 9$ if the average falls below 5.50. The actual conversion price is the lesser of the maximum conversion price and average of 5 closing bids from 5 Wed's preceding the conversion date - if converted in 12 months or more. If I owned the conv I would like to see the price go down below 5.50 for now. The buyers agreed to not do any shorting though. On the other hand the current owners(management) could produce some news to keep the price above 8.50 and minimize dilution..

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