Troy, I took a look back at the convertible securities table and the reference notes in the July 30th S-3/A filing you mentioned. I believe your $108M number is a bit high for dollars open on the preferred. Here's a brief detail as I understand it:
PREFERRED SHARES OUTSTANDING QTY
Series 1 - (all converted)
Series 2 - (all converted)
Series 3 - 46 shares unconverted
Series 4 - 57,657 shares unconverted
Series 5 - 21,182 shares unconverted
Series 6 - (authorized, but not issued)
Series 7 - 30,000 shares unconverted
PREFERRED SHARES OUTSTANDING VALUE
Series 1 - $0.00
Series 2 - $0.00
Series 3 - $4,600 ($100 ea)
Series 4 - $5,765,700 ($1000 ea)
Series 5 - $21,182,000 ($1000 ea)
Series 6 - $0.00
Series 7 - $30,000,000 ($1000 ea)
TOTAL = $56,952,300
If you use a $0.53 share price, that's about 107+ million shares when converted to common. Add to that the 127+ million shares currently outstanding and at least 53+ million shares to cover existing warrants and options.
SyQuest appears to have at a minimum, fully diluted shares currently in excess of 287 million.
Any way you cut it, SyQuest is in deep trouble with their previous plan to access cash through warrant conversions. They simply don't have the common shares available to offer incentives to convert, (even if they could somehow convince the holders to put up more of their cash).
The EdHeads are going to have to announce a new plan soon, and it's going to have to be a major one in order to get them through the September quarter losses and restructuring charges.
Regards - Dale |
