hankiba,
Whups, that was an oversight on my part. However, the correct number is more like 34.5M shares, not the 30.5M shares you stated. And that was at a time when the stock price was at around 1.74588, so it is kind of moot now.
In the following calculations I assume 30,617 preferred shares * $1000 per share = $30,617,000 worth of preferred stock being registered for conversion, as well as 221,880 common shares swapped for debt, and 13,572,541 common shares issued due to warrant conversion. I assume that only the preferred stock conversion to common is variable in quantity, and I assume a 15% discount from the stock price. Where in actuality the conversion price can be more or less depending on the performance of the stock just prior to conversion.
stock @ 1.74588 *.85 = $1.484 conversion price
(matches the estimated conversion price in S-3/A)
$30,617,000 / $1.484 = 20,631,401 shares
20,631,401 shares (preffered shares converted to common)
221,880 shares (debt offering)
+ 13,572,541 shares (warrant conversion)
-------------------
34,425,822 shares
If you multiply it by the 150% SyQuest estimated in the S-3/A we can verify that my calculations match SyQuest's.
20,631,401 * 1.50 = 30,947,101
30,947,101 shares (preffered shares converted to common)
221,880 shares (debt offering)
+ 13,572,541 shares (warrant conversion)
-------------------
44,741,522 shares
SyQuest's estimate was for 44,741,512, so I am off by 10 shares.
stock at 15/16 *.85 = $.796874 conversion price
(yesterday's closing price)
$30,617,000 / $.796874 = 38,421,333 shares
38,421,333 shares (preffered shares converted to common)
221,880 shares (debt offering)
+ 13,572,541 shares (warrant conversion)
-------------------
52,215,754 shares
stock at 25/32 *.85 = $.66406 conversion price
(today's price, but not the closing price.)
$30,617,000 / $.66406 = 46,105,600 shares
46,105,600 shares (preffered shares converted to common)
221,880 shares (debt offering)
+ 13,572,541 shares (warrant conversion)
-------------------
59,900,021 shares
So, things aren't quite as desperate for SyQuest as I thought, but it doesn't look good either.
What happens if we follow SyQuest's example in the S-3/A and try and be conservative and estimate 150%? Which is what SyQuest would do if they were filing the S-3 for the first time today.
46,105,600 * 1.50 = 69,158,400
69,158,400 shares (preffered shares converted to common)
221,880 shares (debt offering)
+ 13,572,541 shares (warrant conversion)
-------------------
82,952,821 shares
Therfore, we have gone from registering 44.7M shares to the equivalent of 82.9M shares.
The above numbers were taken from the following paragraph in the S-3/A.
<<Includes (i) a presently indeterminable number of shares issuable on conversion of or otherwise in respect of 30,617 shares of registrant's 5% Cumulative Convertible Preferred Stock, Series 7, (ii) 221,880 shares issued in exchange for debts owed to certain of the Company's creditors, and (iii) 13,572,541 shares issuable on exercise of certain outstanding stock purchase warrants>>
Okay, so why is it that all of outstanding preferred isn't accounted for in this filing?
I assume that some of the preferred shares listed have been accounted for in previous filings, and/or some of it is yet to be filed for conversion.
See my discussion about the number of preferred shares here:
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