Anyone looked at Lightpath Technology (LPTHA)? They have three convertible deals outstanding:
1. July 29, 1997 - $1.8 million ($5.625 or 85% of mkt)
2. October 6, 1997 - $2.3 million ($7.2375 or 85% of mkt)
3. February 10, 1998 - $3.75 million ($6.675 or 85% of mkt)
The terms are the same with all of them. Conversions can begin 4 months after the deal. Conversions are limited to 20% per month for the next 5 months (but if 20% not used one month, 40% can be used the next, etc), after which any amount can be converted.
The first two deals are currently convertible (subject to 20% limit). The latest deal with begin to be convertible in June. The first deal with be unrestricted in June, the second unrestricted in July, the third unrestricted in Nov.
One thing that was kind of unusual was that the S-3's registered an extreme number of shares for the convertible. For example, in the first deal 1,000,000 shares were registered for purposes of conversion, which is enough to handle $1.80 (plus 15%) per share, which is way less than the market price now and way less than the market price then.
Oh yeah, the company IPO'ed in Feb. '96.
I haven't really looked at the company. Are they for real? |
