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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: add who wrote (14254)	9/3/1999 5:44:00 PM
From: Dennis V.	Respond to of 27311

I agree add, it's all too clear that the CEO, et al made a tactical error. The overall strategy could still work. Everything crossed, 76M run rate soon.

To: add who wrote (14254)	10/14/1999 5:15:00 PM
From: MGV	Read Replies (1) \| Respond to of 27311

You are right add, the interests of pallisard should not supercede. Back to VLNC issues: "So far, we have gotten $9M for 1.67M shares or about $5.4 per share. So if we get the remaining $16M at a price of over $8.4, the shareholders will have come out ahead. Your conclusion is premature." Still think so? The stock price is at 4 and change today. Lets go klemencic, calculate the new conversion price and don't forget to forecast what it will be in six days at the current share price. Wonder if CC will convert tomorrow? : )

To: add who wrote (14254)	10/14/1999 6:56:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

<<However, it is not forgone conclusion that the shareholders have been hurt more although it may look that way so far. Lets look at the two cases. $25M/$7 = 3.57M shares if done all at once previously. So far, we have gotten $9M for 1.67M shares or about $5.4 per share. So if we get the remaining $16M at a price of over $8.4, the shareholders will have come out ahead.>> add, you are forgetting the $2 million financing on September 23rd. Total amount raised so far (since June) = $11 million. Total shares sold = 2,107,438. Average price per share sold = $5.22. In order for the "just in time financing to minimize dilution" scenario to come out even to raising $25 million at $7, they would need to raise the remaining $14 million at an average price of $9.56. Given the current weakness in the stock price, I'd guess it is approaching the time to go back to Daddy Warbucks for more money. Assuming they raise another $2 million very soon for $4.35 per share, they would now have raised $13 million in exchange for 2,567,208 shares, at an average price of $5.06 per share. They would then have to raise the remaining $11 million at an average price of $11.95 per share in order to come out even with raising $25 million at $7. With each increment of the "just in time" financing at low prices, the "just in time to minimize dilution" scenario becomes more dubious.