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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Olds who wrote (9362)	6/19/1999 5:34:00 PM
From: Michael Olds	Read Replies (1) \| Respond to of 17679

Since I was partly responsible for this noise: it would take 0.75 of one average-share trading day to sell the converted shares at today's conversion rate. If only half the holders sell it's a bad morning. Further, for the record: Terms (in plain English): The Corporation has offered to redeem all the outstanding shares of Old Preferred Stock in exchange for an aggregate of (1) 3,000,000 shares of Class A Common Stock, (2) 10,000 shares of a new series of convertible preferred stock having a liquidation preference of $2000 per share, and (3) 21,859 shares of a new series of redeemable preferred stock with an aggregate liquidation value of $48.7 million. Each share of Convertible Preferred Stock and Redeemable Preferred Stock will entitle the holder thereof to receive noncumulative dividends at the rate of 8% per annum, if declared by the Company's Board of Directors. Each share of Convertible Preferred Stock may be converted, at the option of the holder thereof, into 500 shares of Class A Stock, subject to adjustment under certain circumstances. [splits, etc.] Beginning in June 2001, the Company will become obligated to redeem the Convertible Preferred Stock in quarterly installments until March 2008. The Company will also be obligated to redeem the Redeemable preferred Stock in quarterly installments from June 1999 until December 2008. The Company will have the option to redeem the Redeemable Preferred Stock at any time And the Convertible Preferred Stock beginning in June 2001, And will have the option to make both optional and mandatory redemption payments either in cash or in shares of Common Stock. Shares of Common Stock issued to make any optional or mandatory redemption payments will be valued at the higher of $2.50 or fair market value per share.