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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (2965)	8/11/1999 2:00:00 PM
From: Marconi	Respond to of 10293

Hello Mr. Wexler: REFR warrants I noticed the 2M share registration for Ailouros included a provision that the total dollar volume of class A warrants could not exceed 7% of the last 3 months of cumulative dollar trading volume, or the prior 3 months, whichever is lower. With a $20M holding at this time, and 50K sh/day volume, and a $10 share price and 22 trading days per month, that would imply that a little over $2M in shares could be converted per 3 month period by Ailouros. With triple that volume (150K sh/d), it would still take Ailouros over 9 months to convert the A warrants under present terms, which approaches the expiration date of those warrants in 2001. The SEC filing also states Ailouros or agents may not short REFR as long as any warrants are outstanding, or sell lower than the current bid (sounds like an uptick requirement), or be the lowest closing price seller of the day. Sounds like REFR wants to keep the power dive off the common, which suggests a dive won't come from the convertible financing deal. When I shorted last month, I put in a half position cover to box at 7-1/4 (from about 10). It may be doable. We will see what events come about. Ailouros certainly has to be keen on timely liquidation of their warrant position, but it will be a minor factor in the overall dollar volume of transactions. Bbest regards, m