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

To: mooter775 who wrote (14574)	9/15/1999 12:39:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Mooter, there is always the possibility that Castle Creek may convert some or all of the first tranche, which does not have a variable rate conversion feature. So even if we find out they have converted some shares, it does not necessarily mean they have given up on a lower price for the variable conversion. What we do know: So far there is no evidence they have converted any shares (but we are not sure of how long it will take for us to find out when they do). The first tranche of $7.5 million is convertible at about $6, which would translate into about 1.25 million shares. If we find out they have converted 1.25 million shares or less, we cannot be certain they are converting any of the shares from the second tranche. If we find out they have converted more than 1.25 million shares, we know that they have converted at least some of the shares from the 2nd tranche. <<Perhaps those who have argued so strenuously against the logic of Castle Creek converting can still manage to find a negative if CC converts even a portion of their shares.>> Not sure who your talking about there, mooter. What has been suggested is that if they don't convert, that is a pretty clear sign they think they will get a better conversion price. And so far, they do not appear to have converted, even with a rising conversion price. If they do convert, and we know they are converting the Series B shares, then we know they think they've got their best price. Which would be a bullish sign.