CJ, re. SRCM's warrants,
below is the blurb from the 10k. In the list of warrants look at the
item with the (1), which is the one that is callable. It looks like
the co. would fetch 2.3 M X $11 = $25 M by calling these warrants.
The way the warrant call works:
the co. announces that it will redeem the warrants for $0.01 each on
a certain date. Any warrant holder who isn't completely stupid
realizes that rather than receiving a check for a penny from the co.,
he would be far better off exercising the warrants and receiving the
common stock. In doing so, they must write a check to the company.
----------------------------
. Warrants
The Company has issued warrants for the purchase of shares of its common
stock from time to time in connection with various financing transactions and
for advisory and consulting services provided to the Company. The majority of
the warrants provide for registration rights. As of December 31, 1997, warrants
for the purchase of common stock of the Company were outstanding as follows:
SHARES ISSUABLE EXERCISE PRICE
UPON EXERCISE PER SHARE EXPIRATION DATE
------------- --------- ---------------
10,079 $18.60 February 1998
1,034,687 6.00 May 2000
200,000 6.41 May 2000
2,326,500 11.00 June 2000 (1)
83,085 10.80 February 2001
252,676 10.50 December 2002
2,664,917 6.00 March 2004
25,000 11.00 June 2005
68,493 4.38 June 2007
447,000 0.01 November 2007
-------
7,112,437
=========
(1) Warrants to purchase 451,500 shares will become redeemable by
the Company at a purchase price of $0.01 per warrant upon 20 days notice at
any time in the event the sales price of the Company's common stock is at
least $20.00 per share for 20 consecutive trading days.
----------------
Number of shares of Common Stock outstanding as of March 24, 1998: 11,589,954 |
