ALU - Allou Health & Beauty: Another Web Play Message Board

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Technology Stocks : ALU - Allou Health & Beauty: Another Web Play

ALU 3.460

0.0%

Mar 3 4:00 PM EST

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To: Joseph Waligore who wrote (56)	1/14/1999 12:02:00 AM
From: Jim Mac	Read Replies (1) of 418

Allou also filed an S-3 today for over 800,000 assumed shares to be sold for warrants issued in connection with a December private placement, perhaps related to the IPO positioning. The exercise price is bottomless, based on the 20 average lowest bid prices during the 30 trading days preceding the exercise date. The ~866,666 share assumption is based on an assumed exercise price of $4.50, which appears to be the average of the lowest 20 consecutive daily bids during a 30-day period in 1998. In any event, no warrant holder may exercise to the extent that any holder would own 5% of common after exercise. Assuming Allou announces IPO around the MarketWatch IPO, and ALU stays above $10, then it appears less than 400,000 actual common would be added upon exercise. And of course, the warrants vest on different dates. But it is bottomless. CNBC plug on SAME DAY as S-3 filing? Must be ready to file IPO.

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