Auric, All:
I apologize if this has been discussed already, but what is the story behind the headlines on the replacement on the CEO last spring?
From 10_Q for Quarter ended 9/30/98
During the third quarter, the Company made key management changes in the organizational structure of JBOC. Stephen Rubenstein, who had been the President of JBOC since 1994, resigned from employment with JBOC and resigned his board positions with JBOC and S4L. In his stead, Albert R. Laubenstein, who had been Executive Vice President, was named acting President and Chief Executive Officer.
Another Question (displaying an obvious skepticism)...
Why would JBOH have issued convertible debt with a $.70 conversion price a few short months ago. I guess they didn't shop around for a better deal? Who was the purchaser of these notes?
NOTE 3. CONVERTIBLE NOTES
In June 1998, the Company completed the sale of newly issued 9% Secured Convertible Notes in the principal amount of $2.0 million due December 31, 1999.
The notes are convertible into the Company's $0.01 par value common stock (the "Common Stock")at a rate of $0.70 per share. The notes will be converted into a new issue of voting preferred stock of the Company if such new issue is approved by the Company's shareholders. The new preferred stock will be convertible into Common Stock on the same terms as newly issued 9% Secured Convertible Notes.
In conjunction with the above transaction, the purchasers of the newly issued 9% Secured Convertible Notes and another investor also acquired approximately $3.9 million in outstanding principal amount of the Company's 9% Senior Secured Convertible Notes. The Company agreed to reduce the conversion ratio from $1.00 to $0.70 per share of the Company's Common Stock for the entire $4,421,311 of outstanding 9% Senior Secured Convertible Notes. The maturity date of the notes was extended to December 31, 1999, and they are immediately convertible into common shares. |
