Apakhabar:
The legal documents PCMS signed when it issued the floorless
convertibles engage the company to move to an exchange which
does not have the 20% limit in case the shareholders refuse
to approve a waiver of the Nasdaq rule.
This is all clearly explained in the S3.
Note that I do not wish to portray myself as a floorless
expert. The only thing I can say is that in all cases I
am aware of, which are: Geotek (GOTK, now defunct),
Cityscape Financial (CTYS, also defunct), Osicom
(FIBR), Gatefield (GATE), and CVUS (now SPDE), the
issuance of floorless convertibles led to a huge price
decline followed by either a price recovery (FIBR, GATE)
after the floorless converted, or by Chapter 11
when the company was in excessively bad shape.
I will be glad to hear about other issuances of
floorless convertibles which did not lead to an outcome
of the type I described above.
The point that analysts and financial institutions have
read the S3 is valid. Did anyone on this thread see a
recent research report? If yes, what does it say about
the floorless converts?
Best regards,
Bernard Levy |
