Marshall, I was wondering what information you have that leads you to believe that the Series D discount converts have been converted. Then, what of Series E and Series F? This language appeared in the S-3 filed 1/28/99:
"A total of 2,500 shares of Series D, E and F Convertible Preferred Stock are outstanding, with a total stated value of $2,500,000. The holders of the outstanding preferred stock have the right to require us to redeem their shares of preferred stock for cash, at 120% of stated value, if any of the following happens:"
edgar-online.com
It takes some time after the filing for the statement to be declared effective, so if Series D is redeemed, this must be fresh news. Of course, there is also this language in the S-3:
"The Series D Convertible Preferred Stock is convertible into common stock at a conversion price equal to a discount from the market price on the date of conversion. On March 16, 1999, a conversion price floor and ceiling will be established based on average market prices of the common stock during specified periods of time prior to March 16, 1999."
So you'll forgive me for being skeptical that there have been any conversions since it's not March 16th.
Another warning from the same document:
"These increases in the number of shares issuable upon conversion of the Series D Convertible Preferred Stock and upon payment of the premium on the preferred stock could result in a meaningful dilution to other holders of common stock and adversely affect the market price
of the common stock."
BTW, I wouldn't be surprised if the holders have sold short the minimum number of shares that they can convert.
Barb |
