This is lifted straight from the S3. Capitalization it theirs.
No matter how you slice it, it is a major vote of no confidence in SYQT by its major shareholders.
What do they know that you should know?
I suggest every SYQT shareholder read the entire S3.
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PROSPECTUS
SYQUEST TECHNOLOGY, INC.
44,741,512 Shares
Common Stock
(Par Value $0.0001 Per Share)
All of the shares of Common Stock, par value $0.0001 per share ("Common
Stock") of SyQuest Technology, Inc., a Delaware corporation ("SyQuest" or the
"Company"), offered hereby are being offered for resale by certain stockholders
of the Company (the "Selling Stockholders") as described more fully herein. The
Company will not receive any of the proceeds from the sale of the Common Stock
by the Selling Stockholders. See "Use of Proceeds."
The Common Stock is quoted on the Nasdaq National Market under the symbol
"SYQT." The last reported sales price of the Company's Common Stock on the
Nasdaq National Market on June 5, 1998, was $1.484 per share.
The shares of Common Stock offered hereby by the Selling Stockholders
consist of (i) in accordance with Rule 416 of the Securities Act of 1933, as
amended (the "Securities Act"), a presently indeterminable number of shares of
Common Stock issuable on conversion or otherwise in respect of 30,617 shares of
the Company's 5% Cumulative Convertible Preferred Stock, Series 7, par value
$0.0001 (the "Series 7 Preferred Stock"), (ii) up to 221,880 shares of Common
Stock issued in exchange for debts owed to certain of the Company's creditors
and (iii) up to 13,572,541 shares of Common Stock issuable on exercise of
certain outstanding stock purchase warrants (the "Stock Purchase Warrants").
The number of shares of Common Stock estimated to be issuable and available for
resale on the conversion of the Series 7 Preferred Stock is based on a
conversion price of $1.484, which price is the closing sale price of the Common
Stock on June 5, 1998. The number of shares available for resale is subject to
adjustment and could be materially less or more than such estimate depending on
factors that cannot be predicted by SyQuest at this time, including, among
others, the future market price of the Common Stock. This presentation is not
intended, and should in no way be construed, as a prediction of the future
market price of the Common Stock. THE SECURITIES BEING OFFERED BY THIS
PROSPECTUS REPRESENT APPROXIMATELY 43.2% OF THE ISSUED AND OUTSTANDING COMMON
STOCK OF THE COMPANY. See "Risk Factors --Convertible Securities, Options and
Warrants; Dilution" and "Selling Stockholders." |
