Dominion Bridge Corp. (DBCO) Message Board

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Microcap & Penny Stocks : Dominion Bridge Corp. (DBCO)

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To: erik vilnis who wrote (465)	2/26/1998 10:59:00 AM
From: Duncan	Read Replies (1) of 535

<<What happens to this deal if ECO doesn't trade above 15 in the future?>> That's the risk of investing I guess. To specifically address your question, I assume DBCO shareholders would continue to recieve their interest on the $3 buy out price...and one of two things would happen at the end of the Note's term: 1) the principal and interest on the Note would be paid, or 2) ECO would force conversion of the DBCO shares with converted shareholders carrying a $15 tax basis...even if the stock trades for less than $15. #2 is advantageous to ECO, but I suspect the final agreement will have some protection clauses for the DBCO shareholders--such as anti-dilution provisions--if this situation materialized....which segways into a third scenario--"-ratcheting down" the tax basis of the stock under certain anti-dilution provisions) from $15 to a recent trading level. We simply don't know all the details right now...and I suspect many are still being refined...but that's my educated guess for the time being. Hope it helps. Duncan

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