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

To: Bob Childers who wrote (15813)	11/9/1999 2:11:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Bob, as far as I know, it would be illegal for a hedge fund to trade with the benefit of inside information just as it is illegal for insiders or anyone else. The contract with Castle Creek has a clause which says (to my recollection) something like VLNC must provide any information requested by Castle Creek, but VLNC must note any information they provide that is not public. As I said, I assume that clause is to protect VLNC from any liability if Castle Creek is given inside information. Kind of like, "We're giving you this information you requested, and we are informing you it is not public knowledge. What you do with it is up to you." Thus, if it were later found that Castle Creek was trading with the benefit of inside information, VLNC would be protected from any suggestion of collusion because they had notified Castle Creek that the information they provided was not public. I have to assume that Castle Creek and VLNC are both following the terms of the contract, and are complying with securities law. Therefore, I assume that if Castle Creek is selling the stock, they are not doing so with the benefit of material inside information. Maybe Castle Creek also relies on SEC filings for their info? <VBG> PS: Here is the relevant language from 12/21/98 8-K filing. "The Company further agrees to promptly provide to any Holder any information with respect to the Company, its properties, or its business or Holder's investment as such Holder may reasonably request; provided, however, that the Company shall not be required to give any Holder any material non-public information. Without limitation of the foregoing, if any information requested by a Holder from the Company contains material non-public information, the Company shall inform the Holder in writing that the information requested contains material non-public information and shall in no event provide such information to Holder without the express prior written consent of such Holder after being so informed." Now that I've refreshed my memory, the contract actually allows VLNC to withhold material non-public information.