VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Larry Brubaker who wrote (9634)	3/21/1999 1:21:00 PM
From: Larry Brubaker	Read Replies (2) of 27311

Final Recap (unless somebody wants to carry this further). The structure of the financing deal with Castle Creek allows them to hedge their bets. They do not have to report if they do hedge their bets. They have apparently not converted any preferred shares yet. My speculation: they probably have shorted at higher prices and maybe even covered shorts in the open market at closer to the current price. They may have done this more than once. The structure of the agreement allows them to do this with little risk. I don't see such activities as a "conspiracy theory" or Castle Creek "betting" that VLNC will fail or succeed. I simply see them trying to maximize their profits while the ultimate outcome is unknown, while positioning themselves to profit regardless of the direction of the ultimate outcome. We should get a clue about the ultimate outcome soon when we see the next round of financing.

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