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To: dwight martin (775 )
From: dwight martin Monday, Mar 9 1998 11:03PM ET
Reply # of 2127
From GMGC IR, the following response: "It is a fixed share amount and fixed conversion price; the buyers benefit from a higher, not lower market price." Original message below:
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From: Dwight Martin
To: Markley, Don
Subject: Recent $5MM Financing Increment and Microsoft Deal
Date: Monday, March 09, 1998 5:08PM
I have read about, but do not fully understand, the mechanics of the financing.
The release states that the holders of the convertibles may receive stock at a "discount to the market price." What I fear is not that they may receive a discount, but that they may profit from a lower and lower stock price, enough to where they will be cheering it down.
So, my question is this: "Are there share value protections built into the financing, such as a ceiling on the number of shares they may receive, or a price floor below which they may not receive new stock, or is this the old "floorless" convertible debenture?"
Thank you. |
