Buzz;
NEW YORK, Dec. 4 /PRNewswire/ -- Complete Management, Inc. (NYSE: CMI - news)
announced today that it has closed on $2,750,000 of new convertible secured debt financing with
domestic and foreign institutional investors. In addition, $1,250,000 of existing demand loans were
converted into the new Convertible Secured Notes. The new Convertible Secured Notes mature in
July 2002, bear interest at the rate of 9% per annum and are convertible into Common Shares at
$1.50 per share. The lenders also received warrants to purchase an aggregate of 800,000 Common
Shares at $0.75 per share. The Notes and $4,900,000 of prior debt are secured by CMI's equity
interest in four subsidiaries.
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Seems to say they can convert notes at 1.50 , and got 800,000
warrants as a bonus convertable at .75
Now that happend DEC 4th, and just at that time she went to .75
and they likely shorted 800,000 at .75 against the warrants.
It's like discount points on a loan, with the warrents they never
have to cover, and got back $600,000 up front by diluting the
shares. Still this is not a real bad deal, and they have other
reasons to try and get the price up, so while they don't have to
cover there is a good chance they will. Then let her run to .75
or so and short again.
If they didn't short right off the bat then they have even more
reason to get her to .75
I just don't see her folding, my last buys were at 1/4
Jim
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