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Gold/Mining/Energy : Global Thermoelectric - SOFC Fuel cells (GLE:TSE) -- Ignore unavailable to you. Want to Upgrade?

To: CH4 who wrote (3091)	8/18/1999 1:11:00 AM
From: StockPro	Respond to of 6016

Just got my package in the mail tonight! As for your question, here is my "loose" interpretation ... The "rights" are like warrants, except that they cannot be exercised at any time you choose, only at "separation time" (check the definitions) when there is a "non-permitted bid" or "flip in event". The current exercise price of the "rights" are $35. The exercise price and or total number of rights outstanding is subject to "adjustment" under the provisions and formulas laid out in sections 2.3 and 3.1 of Schedule A (the Shareholder Rights Plan Agreement). I have to admit that upon reading the above sections (2.3 and 3.1) I am pretty well lost in the legal mumbo-jumbo, but basically I take it to mean that if, for instance, there is a split or consolidation of shares, the number of rights and the exercise price would be adjusted to reflect that change. The articles outline other circumstances under which an adjustment would be required or permitted, but like I said ... most of it is "gobbledy-gook" to me (not being a legal expert). As near as I can determine, the intent of all the legal mumbo-jumbo, is to ensure that regardless of share splits, consolidations, new shares issued, etc. the number of rights will always be adjusted so that there is "one right" for each "voting share" outstanding. As for price adjustments, other than when share splits or consolidations take place, I am not entirely clear as to what other events might trigger a "price adjustment".