All,
If you're thinking Syquest may climb out of the 2s any time soon, read their latest S-3 filling from June 11, 98 and think again.
Go to www1.freeedgar.com and enter SYQT in the ticker symbol edit box, then press search.
Here are a few points:
Registering for sale approximately 44,741,512 shares from conversion from preferred stock to common stock. (Syquest doesn't get any more money for it.)
<<THE SECURITIES BEING OFFERED BY THIS PROSPECTUS REPRESENT APPROXIMATELY 43.2% OF THE ISSUED AND OUTSTANDING COMMON STOCK OF THE COMPANY. >> [emphasis is unchanged from the S-3 filing]
<<The exact number of shares of Common Stock issuable on conversion of the Series 3, 4, 5 and 7 Preferred Stock, the only series of preferred stock that have not been fully converted, cannot be estimated with certainty because, generally, such issuances of Common Stock will vary inversely with the market price of the Common Stock at the time of such conversion, and there is no maximum limit on the number of shares of Common Stock that may be issuable.>>
<<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. >> (Series 7 conversion at greater of either average of 5 days preceding conversion or 90% of day preceding conversion, not to exceed $3.00.)
So, with approx. 44M new shares about to hit the market (43.2% OF THE ISSUED AND OUTSTANDING COMMON STOCK), any slight rise in price and/or volume will be met with serious selling pressure -- obviously IMO. |
