Yieldup International (YILD)
YILD had a press release today concerning a $6 million
convertible preferred. This translates to 615,000 shares.
Float is 3,900,000 according to Market Guide giving us
16% of float , except......
from the 10KSB filed today :
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On March 30, 1998, the Company completed a $6 million equity financing in a
private placement of convertible preferred stock (Series A Preferred Stock). The
Company, subject to certain conditions, may exercise a put option for up to an
additional $6 million and the investors, subject to certain conditions, may
exercise a call option for up to an additional $6 million. The Company has
agreed to file a registration statement for the resale of the shares of the
Company's Common Stock acquired on conversion of the Series A Preferred Stock.
Under the securities purchase agreement, the Company has issued 600 shares
of convertible preferred stock which are initially convertible into an aggregate
of approximately 615,000 shares of the Company's Common Stock. After the
satisfaction of certain holding periods, each of the newly issued shares of
Series A Preferred Stock is convertible, at the option of the holder, into
shares of common stock of the Company based upon a conversion price of $10.8625
per share or if lower, 100% of the market price, defined as the lowest closing
bid price during the 20 trading days preceding a conversion. The convertible
preferred stock bears a dividend of 5% per year, payable in kind. The shares of
Series A Preferred Stock are subject to automatic conversion after three years
if not previously converted.
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Haven't seen the lowest closing bid in 20 day language
before. Anyone else ? The other thing item missing is
the timeline , and I'm not sure we can expect a more
detailed 8K since it is covered in the 10KSB.
"Someone" might have to call the CFO. ;-)
Rob |
