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To: Ellen who wrote (31602)	6/22/1999 4:09:00 PM
From: sandbag	Read Replies (1) \| Respond to of 44908

Ellen, If the stock is trading at .055, how much would you pay to have the "right" to buy them at that price? .001?, .002? I believe that is where the value of trading the rights come in. It is certainly tied to the value of the underlying stock price. Barry

To: Ellen who wrote (31602)	6/22/1999 4:10:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 44908

Ellen, first it depends how the rights are structured, if their is a time lag between rights grant and rights exercise and that lag is long, the company does not have access to the money in time. If the rights are simply "one for one, then the rights would trade in the sub pennies range, not wise. It is probably best to have a short time between rights grant and exercise to prevent arbitrage situations (putting more pressure on the stock) and to get the money in the coffer fast. In any event, until a floor is established on the floorless, any rights offering will probably be a failure. Management should (and should have done it long time ago) negotiate a ceiling for a floor. If they have real numbers to back up the dreams they have been trumpeting on this thread through various surrogates of outsized sales and profits, they should be able to persuade the floorless that it would be "stupid" not accept a "ceiling for a floor" deal. If somehow, I missed the ceiling and it already exists, it still would make sense to negotiate half or whatever the prior ceiling for a real floor. Ellen, you have talked to management before, ask them why they are not engaged in such negotiations as we write to each other here. Zeev