ahhaha, even to a simple man like me this seems relevant.
@Home's 10Q report dated May 15,1998 contains the following paragraph:
"Dilution from Certain Transactions. The Company has entered into agreements with Cablevision, Rogers, Shaw and Century pursuant to which the Company has issues warrants to purchase a total of 20,546,936 shares of Series A Common Stock. Under these agreements, warrants to purchase 10,231,298 shares of Series A Common Stock at $0.50 per share and 350,000 shares at $10.50
per share were exercisable as of March 31, 1998. To the extent that Cablevision, Rogers, Shaw or Century become eligible to and exercise their warrants, the Company's stockholders would
experience substantial dilution. The Company also may issue additional stock, or warrants to purchase the same, at less than fair market value in connection with its efforts to expand its
distribution of the @Home service to other cable operators."
Malone is expanding the market for ATHM,by selling ATHM stock for pennies to cable companies. Now for someone who can't think like me,and does only simple algebraic math,this seems fairly important to the stock price,though not important to the company. ATHM may get 30% of the revs,as opposed to 25% by RoadRunner,but they sell their shares back at a fraction of the cost. When those shares hit the market the stock will fall.
High on ATHM technology,disgusted with Malone thinking everyone is a fool.
Hiram |
