XYBRW - To all:
Straight from the CFO... here's the scoop:
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.
What this means is that they changed the strike of the warrant to $7.55. For every warrant we own, we can buy 1 share of stock at this price. The warrants will not be in the money until such time. I'm personally thinking of holding since I believe in this company's potential...
Please accept my personal apologies for un-intentionally passing along confusing info... I promise to get the ba#tard who misled me w/ wrong info... @#$%^&*.!!!
Zak |
