Tony,
Knic is being kept down here because of a poorly structured convertible debenture private placement, done and announced in October but approved by the SEC Dec. 9th. According to the terms, on Dec 19th, 1/3 of the $15.5M can be converted. Its convertible as high as $12/share or as low as $5.25. The conversion price is 15% off the average closing BID, 5 trading days before conversion date. Only about 30% of the debenture holders is expected to convert, because the remaining 70% are pension and other retirement funds that look to the 7% income for 2-4 years.
I spoke to an individual that has offshore friends and told me, after looking through the private placement documents, that these players will SHORT or sell stock or get MMs to SHORT, to keep the stock in the 5.75-6.5 range til Wednesday the 18th, then they will let the stock go on Thurday(Conversion day) and run it up to about $8.50-9.00 til Jan 2. Then on Jan 2, they take the stock down again to 7.5-8.00, until the next 1/3 is convertible Jan.9th. On Jan 9(conversion day) they will run the stock to about 10.50-11 til Feb. 9th, when the last 1/3 can be converted.Five days before Feb 9(conversion day) they well take the stock down to 9-9.50.
I expect some great Pure Energy news after Jan 1st since they are now producing a brochure that will be available the 1st or 2nd week in Jan., Meaning the story will be known before then, also meaning that the BANDITS involved in this manipulation will get have their well laid plan blow up in their face.
One good thing will come out of this though. Lou Knickerbocker will probably never do a deal like this again. |
