VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: John Curtis who wrote (3584)	8/5/1998 4:15:00 PM
From: I. N. Vester	Read Replies (1) of 27311

JC: re shorting discussion on yahoo Terms state that the variable pricing on conversion of perfered to common is ONLY available 1 year AFTER 1st closing. That term goes down to 6 mo. if PO are not announced within 6 mo. For now, no possibility for holder to short and convert and a depressed price. Their conversion price is FIXED for now. If no PO within 6 mo. then nothing stops them from pursuing that strategy. As long as po comes in we're cool. Some very big risks if not. Think that indicates 100% confidence by LD & Co. that PO will be in hand within 6 mo. I believe the above discussion covers the ONLY reason that this particular instance of variable conversion should not pose undue risks of very unfavorable dilution. I don't see anything else in the terms which would avoid the risk.

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