To: Suzanne Newsome who wrote (33054 ) 7/30/1999 11:01:00 AM From: Zeev Hed Read Replies (2) | Respond to
Suzanne, pull out the last S-2B. They mentioned there 17 MM shares in escrow, of which 2 MM shares were delivered against conversion of some $430 K or so, these might be the "Bernie" people, that should have left us about $2 MM. Now put yourself in the bandits place, they have 5 days look back, you think they will convert at the maximum price over that trading period? I think not, to the extent they converted, they would have done it at $.04 less 30% or under $.028, lets take $.03. Just these two millions thus would have converted to 67 MM shares. Add to that the 7 MM shares that Gordon had to wait to get back until authorization of additional shares. The last count before the AGM was 97 MM shares, so the additional 25 MM shares, less the 7 MM to Gordon leaves only 17 MM shares as possible conversions. There is an unknown of 7.5 MM shares in additional options granted (I have no idea what was the pricing, but Gordon uses repricing so often, I would assume he could have done that again), thus maybe only 10 MM of the additional shares are from conversion, which at $.03 is only $300 K.
