OUTSTANDING WARRANTS:
At December 31, 1997, outstanding warrants pursuant to the IPO were 2,415,000 and outstanding
warrants pursuant to the conversion of the November 1996 Debentures and the April 1997
Debentures were 1,431,427. These 3,846,427 warrants originally entitle the holder to purchase one
share of the Company's Common Stock at an exercise price of $9.00 and expire on July 17, 1999.
These warrants contain anti-dilution provisions that, upon issuance of the Series A Preferred Stock
and the Series B Preferred Stock, have adjusted the number of shares that can be purchased with one
warrant to $1.19, resulting in an effective exercise price of $7.55, and 4,583,402 shares that would
be issued upon full conversion of the warrants. |
