Charles, and other FTEL shareholders, YOU SHOULD READ THIS:
<<All of the following quotes are taken from the Dec 9, 1997, S-1:
edgar-online.com
Page 36
. . .The Series C Preferred Stock is automatically converted into Common Stock in May of 1999 . . . >>
Earlier I said that early 1999 was an important time. I stated around February 1999, but it is exactly May 1999.
I have no position in FTEL, but since I've followed this company for months, and have done a decent amount of SEC document reading on the company, I thought I'd remind everyone of that important date.
For those who are "in the know," you won't need this information. But for those who might not know what is going on, I hope this info helps.
The floor on the Series C stock is $ 1.00 (can't convert for less than $1). However, it then says it is automatically converted into Common Stock in May of 1999. What does that mean? Does the floor still hold in May of 1999, or will it convert at the current price?
If I had a position in FTEL, I'd look into that matter right away. If you think FTEL will be at least a dollar by May 1999, keep in mind that the market could potentially be flooded with shares that are being converted and then sold.
How many shares have not been converted? Has anyone asked the company? I'd ask them that question, too.
One last question, for me, would involve Frank's most recent message. Exactly what is meant by the FNET financing, or whatever he said? Is he saying that a private placement is coming, or just that they will be getting partners for various joint ventures?
More private placements will probably give you more of what you may have now: Too many shares flooding the market.
I know how it feels when a stock you hold keeps falling and falling. As some may know, I've been wrestling CD quite a bit, myself. I share these insights not to frighten anyone, but to help us all understand what might be going on.
One last thing, for anyone who may not remember, the 10K should be out any day now according to the CFO's August 18, 1998 Officer Update.
May FTEL prosper. May we all agree to disagree, and learn from each other.
FTEL: .84
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