Dale, All,
<<As of June 30, 1998, the number of Incentive Shares sold pursuant to such agreements totaled 11,944,880. The total number of Registrant's common stock issued and outstanding as of June 30, 1998, including the Incentive Shares, is 127,032,278.>>
Just how many shares have converted from preferred to common since the last S-3?
According to the latest 8K, shares outstanding as of June 30th was 127,032,278. If you subtract the newly sold shares 11,944,880 that are above and beyond any conversion, then you get 115,087,397 shares.
Now, the number of shares registered for sale in last S-3 was 44,741,512. Although I couldn't find any number stating the current number of shares outstanding, the S-3 did state that the 44M shares they were registering represented about 43.2% of common. So, if you take 44,741,512 / .432 you get 103,568,314 shares outstanding as of the June 11th filing.
So, subtracting 115,087,397 shares by 103,568,314 shares you get 11,519,084 shares. That means that approximately 11.5M shares of 44.7M shares converted to common since June 11th. Since I don't know the date that the S-3 was deemed effective, I assume that it happened within a couple of weeks -- putting us as late as June 25th. That means that in something less than 19 days and something greater than 5 days 11.5M new shares hit the streets.
With Nasdaq's "double counting" that means that something more than 23M shares "changed hands" within a 1-2 week period. That should explain both the increased volume and the decline in the price of the stock. Who said it was MM manipulation. Bah!
Of course, that still leaves 33.2M shares to convert to common plus an additional 11.9M shares of newly issued stock (that will have to be registered before Sept. according to the 8K) That brings us back to 45M shares needing to convert to common.
Then again, I could be mis-reading this whole situation.
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