Ancor mgr told me about 15% per month limitation on conversion for Series C..No time to ferret out the specific clause right now..BTW, suggest you go to FreeEdgar to see today's 8K filing regarding Ancor changing to new auditor KPMG ( aka Peat Marwick ):
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS
On September 25, 1998, the Company engaged KPMG Peat Marwick LLP ("KPMG")
as its new independent auditors, effective immediately. Prior to the engagement
of KPMG, the Company had sought proposals from other accounting firms with a
view toward engaging a new independent accounting firm. The decision to engage
KPMG was approved by the unanimous consent of the Company's Board of Directors
upon the recommendation of its Audit Committee.
Prior to the engagement of KPMG, on September 18, 1998, Ancor
Communications, Incorporated (the "Company") received notice from McGladrey &
Pullen, LLP ("McGladrey") that McGladrey was terminating the client-auditor
relationship between the Company and McGladrey. Such termination was effective
on September 18, 1998.
The reports of McGladrey on the financial statements of the Company for its
fiscal years ended December 31,1997 and December 31, 1996 did not contain any
adverse opinion or disclaimer of opinion and were not qualified or modified as
to uncertainty, audit scope or accounting principles. During the Company's two
most recent fiscal years and the subsequent interim period through September 18,
1998, (i) there were no disagreements between the Company and McGladrey on any
matter of accounting principles or practices, financial statement disclosure or
auditing scope or procedure which, if not resolved to the satisfaction of
McGladrey, would have caused McGladrey to make reference to the subject matter
of the disagreement in connection with its reports (a "Disagreement") and (ii)
there were no reportable events, as defined in Item 304(a)(1)(v) of Regulation
S-K of the Securities and Exchange Commission (a "Reportable Event").
The Company has not, during the Company's two most recent fiscal years or
the subsequent interim period through September 18, 1998, consulted with KPMG
regarding (i) the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit opinion that
might be rendered on the Company's financial statements, and no written report
was provided to the Company or oral advice was provided that KPMG concluded was
an important factor considered by the Company in reaching a decision as to the
accounting, auditing or financial reporting issue, or (ii) any matter that was
either the subject of a Disagreement with McGladrey or a Reportable Event.
The Company has furnished McGladrey with a copy of this Form 8-K and has
requested that McGladrey furnish it with a letter addressed to the Securities
and Exchange Commission (the "Commission") stating whether it agrees with the
above statements. A copy of McGladrey's letter to the Commission, dated
September 25, 1998, is filed as Exhibit 16.1 to this current report on Form 8-K.
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