To: ynot who wrote (9623 ) 6/21/1999 2:34:00 AM From: Jay Fisk Respond to of 18998
Here's one that may have some major tankage: Anyone long on HYBR is sitting on a timebomb due to pending dilution. The big unknown is the date of distribution of these new 3,000,000 shares. When they hit the market HYBR will take a MAJOR hit as these "new" owners have no reason to hold. Wowie, 22.6% dilution, this one's gonna drill some holes, at the current trading rate of less than 50K per day (I'm optimistic !) this one is easily less than a buck ! Here's the OFFICIAL HYBR version from the restated 10Q: ""In March 1999, we (HYBR) and the other parties to the state class action lawsuits and the federal class action lawsuits (other than PwC) reached an agreement in principle to settle the lawsuits. The agreement is subject to the parties' entering into a binding stipulation of settlement and approval by the U.S. District Court for the Northern District of California. Under the agreement in principle, (i) our insurers would pay $8.8 million on our behalf (and on behalf of the other officer and director defendants), (ii) we would issue 3.0 million shares of our Common Stock to the plaintiffs (the number of shares would be increased proportionately to the extent that there are more than 10.5 million shares of our Common Stock outstanding on the date of distribution so that, as of such date, the plaintiffs would hold approximately 22.6% of all of the shares of our Common Stock that are then outstanding), (iii) if we are acquired within nine months after March 9, 1999, the date of the agreement in principle, then, in addition to the consideration referred to in (i) and (ii), we would pay to the plaintiffs an amount equal to 10% of the consideration received by our stockholders in the acquisition. "" HYBR currently in the 2.50 - 3.00 range - BB junk. Apologies to rabid HYBR longs and the last two audit firms that bailed.