Coyote Network Systems (CYOE), Mixing It Up, IP and ATM Message Board

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Technology Stocks : Coyote Network Systems (CYOE), Mixing It Up, IP and ATM

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To: Q. who wrote (269)	6/4/1999 12:48:00 AM
From: TheLineMan	Read Replies (2) of 360

John, I'd like your opinion on this. If you go to the bottom of that 8k it looks like CYOE are getting $10mil, but they are paying $4mil + 325k warrants (worth another $1/2 million at todays close) to redeem 100 of the 700 preferred convertible shares. $6 million net. This one looks like it is getting out of control at least as far as dilution/financing is concerned. They should net $6 million but they still have 6/7ths of the JNC convertible outstanding. Sunrise get 132k shares (warrants at $6 - already a nice profit), another 325k shares for JNC (warrants @ $6 - like Sunrise a nice profit if execised now). Another 2.5 mil shares set aside for the deal with the old Diana Corp holders (I'm not sure but I believe those warrants are set at $9). On top of that I am not sure how many more new shares are issuable. I believe the outstanding 600 prefered could be another 6 million shares considering that they had 7 million reserved for the original 7 million. This filing is way to complicated for my tiny mind. Why put 3+ million shares aside as collateral for a $10mil loan. Will they get the loan? Does the lender regard that CYOE stock is worth less than $3 a share - even at 100% collateral. As far as I know loans can be secured with as little as 10 to 20 % collateral if you have a decent business plan. Is CYOE only worth 30 cent a share? Looking at it briefly and the complexity I can only believe that the Coyote is cooked! I would like your opinion however.

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