Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Zeev Hed who wrote (239)	1/21/1999 1:13:00 AM
From: George Dawson	of 1438

Zeev et al, I am happy to report that the shareholders of a stock I reported on here earlier (myself included) may have survived a floorless convertible. My initial reference to our experience with Ancor Communications was reported in the following link: Message 5915251 At that time the stock price was 1 9/32. Today the stock closed at 8 1/4. Business prospects appear to be good. The short position is decreasing toward baseline (although this month's will be a key data point), and the conversion is essentially complete. Although it is not possible to know many critical details - it appears to me that there might be a critical balance between the conversion formula and the maximum allowable conversion per month that may have prevented excessive dilution (final shares outstanding will probably be 25M) and sub $1.00 share prices (although the 52 week low ranges were very demoralizing). I invite your comments on this balance (conversion formula vs. maximum allowed conversion per month) as a form of high risk financing for a company who needs to raise capital. Thanks, George D.

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