Observations from S-3
All remaining Series B and Series C Preferred Stockholders are listed in Table 1
as being maxed out on the number of common shares they can own, or at least they
are being credited with owning the maximum number of shares.
B shares C shares Common
The Tail Wind Fund Ltd. 30 173 692,604 5.00%
Nelson Partners (10) 100 145 678,751 4.90%
Olympus Securities, Ltd. (10) 94 271 678,751 4.90%
CC Investments, L.D.C. 382 692,604 5.00%
International 75 678,751 4.90%
Total common shares outstanding as of 8/26/98: 13,852,080
If I am interpreting the restrictions correctly, they will have to sell
(or dispose of in some manner) some of their current common stock before
they can convert any more of their preferred stock.
From page 17:
A Selling Shareholder may enter into hedging transactions with broker-dealers
and the broker-dealers may engage in short sales of the Common Share in the
course of hedging the positions they assume with such Selling Shareholder,
including, without limitation, in connection with distributions of the Common
Share by such broker-dealers.
Regarding additional rounds of financing:
In addition, certain holders of outstanding securities of the Company
have rights to approve and/or participate in certain types of future equity
financing by the Company.
More observations as time permits.
Greg |
