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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Kerry Lee who wrote (22562)	6/11/1999 10:32:00 PM
From: Skip Miller	Respond to of 29386

To All: Ancr made the preliminary list for addition to the Russell 3000. This is not final yet...... russell.com

To: Kerry Lee who wrote (22562)	6/11/1999 11:41:00 PM
From: Kerry Lee	Respond to of 29386

Note 2 critical features to the warrants: 1. There is ZERO vesting of warrants until Ancor ships the first $10 million of product to Sun. 2. Sun has a maximum of 3 years in which to take $100 million of switches from Ancor in order to earn/vest the maximum amount of warrants ( 1.5 million shares at exercise price of $7.30 ). PS - for the doubting Thomases, I can only say "watch the dominoes start to fall..ROFLMAO....8th seeded Knicks on the verge of beating the heavily favored No 1 seeded Pacers...Who wudda thunk it???

To: Kerry Lee who wrote (22562)	6/12/1999 1:38:00 AM
From: Greg Hull	Read Replies (2) \| Respond to of 29386

Kerry, Thank you for notifying us of this filing, and posting these portions. I have just given it a cursory reading (I'm not done washing Larry's cars yet) and so I may have missed something. My first thought when the Sun deal was announced was "Oh great, here's the financing for the second half of the year." When I read further and saw that the warrants vested with purchases, I deduced that it seemed unlikely that Sun would purchase $100M of switches this year, and that most if not all of the $11M received for the underlying common stock would be after 1999. Why would Sun exercise the warrants prior to expiration unless they want to sell the common shares immediately? The answer may be in the filing and I did not catch it. By the time Ancor receives the funds from Sun they probably won't need the cash. I wonder if the warrants were creative selling, or shrewd purchasing by Sun as has been implied by more than one poster. If the common hits $74, Sun's net expenditure will be $0. Cal has said that they would prefer an equity investment by a customer rather than to have a secondary offering. The recent IPOs/secondaries may have changed that thinking some what. The added attention caused by the underwriters peddling the offering may add gas to the fire. 1-2M shares sold could bring in $30-40M today. That ought to last until they are cash flow positive. The INRANGE deal carried warrants with it and so did Sun - why didn't HDS ask for them? Will every heavy weight now expect them? At what point is it not in Ancor's best interest to offer warrants? Maybe the next announcement of an OEM will include warrants (or common) with $10-20M up front. If this were to happen would Ancor still want to have a secondary offering for the attention it brings, including analyst coverage that ANCR is sorely lacking? Greg