Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : MIDL .... A Real Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: dreamer who wrote (6024)	6/9/1999 10:55:00 PM
From: Ga Bard	Respond to of 7039

I am getting this worked in a format that hopefully will be a win . win . win. sceanrio . Looks like it complies with what everyone wants, the prospectus, the sec laws and no one gets screwed. I am going to try and meet with Thomkins since I am only 30 minutes from his office. So far two of the large P holders like this new development. A 30 day window seems to be the answer. :-) GB

To: dreamer who wrote (6024)	6/10/1999 9:03:00 AM
From: Ga Bard	Read Replies (2) \| Respond to of 7039

Dreamer ... Please understand this whole mess, as usual, has brought out the write up in the prospectus which is the governing law of the warrants. La Jolla is infamous for doing underwritings and setting up arbitrage. Now when I stated I was in favor of increasing the warrant price to stay the arbitrage you have to understand there will probably always be a window. After reading up on some stuff last night, should the common or the warrants come out trading again the first 30 days I believe we will only see a bid. The sponsoring MM will have that long to gather an inventory. The Ps cannot convert until the shareholders meeting where the common has to be authorized. This chain of events will give the warrants plenty of time to be sold or exercised prior to the warrant exercise price going up. Now the personal attacks always seem to distract from the focus of the topic. Now here is the way I see the chain of events should this happen. Now if someone wants to attack me personally then I will fight with them or we can discuss the future. Until it is trading this is all BS. 1.) The NASD allows the common to trade. 2.) The MM establishes a bid (low of course) and probably a high ask (Very High) 3.) The are only 3.5M or so in the float of the common ... 4.) People will sell allowing the MM to accumulate an inventory for 30 days at which time other MMs can come on board 5.) Once the common is active a 15c211 is submitted on the warrants. 6.) The same scenario on the 30 days of a low bid and high ask to build an inventory then other MMs will be on board once active. 7.) The Ps will be months away from getting the conversion because of the shareholder vote to authorize the additional shares at a shareholder meeting. 8.) Sometime during the course of restart of the trading, the warrants will be bought to cover any short position prior to the exercised price being raised to a level where arbitrage cannot affect the stock from maintaing the price level of small caps at least. 9.) Shorts that are hung on the P are going to have to go for the warrants to cover whatever they can but will try to go after the common first until the price goes to about the arbitrage strike. 10.) This will all get interesting and the critical part is if the BOD see this ... everyone will be able to capitalize on which ever part of the structure they are invested in if the window of the increase exercise price is announced. There is a massive short position in the Ps ... with the halt the Ps will convert and not trade again. This halt works in our favor because the arbitrage on the Ps has gotten nailed. This leaves only the warrants and the common to cover shorted positions. The Key is the timing on raising the warrant exercise price. It should not be raised until both common and warrants are trading. The P will take till October so it is not in the picture. This is how I see it happening ... I do not think anyone has anything to worry about but the price of the exercising of the warrants if done right will be quite effective and those looking to bail or whatever will have plenty of opportunity. I prefer to discuss rather than fight. But I am sick of emotional people calling me a crook. This stock has 1.3M of CBQI in it for an asset base. I will have appr. 420K of shares after this is all said and done if I do not buy another share. (I do intend to be buying more in the panic sell) ANd I know of four others that will hold just as nmuch and 1 other than will hold double. Remember this one is held tight ... :-) GB