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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (7288)	11/13/1999 9:34:00 PM
From: John Madarasz	Respond to of 10081

Ron... From the most recent 8-K filing: ONSTAR TO INVEST $15 MILLION IN GENERAL MAGIC STRATEGIC PARTNERSHIP ALSO INCLUDES $5 MILLION LICENSING FEE; ONSTAR WILL TAKE SEAT ON GENERAL MAGIC BOARD SUNNYVALE, Calif. (November 10, 1999) . . . General Magic (Nasdaq: GMGC) today announced that the OnStar unit of General Motors has entered into a definitive agreement to make a $15 million investment in General Magic. The investment is in the form of voting, non-redeemable shares of Series G Convertible Preferred Stock, plus a warrant to purchase up to an additional $5 million worth of Series G Preferred Stock. OnStar and General Magic expect to close the investment immediately following the receipt of regulatory approval for the transaction. OnStar will then have the right to elect a member to the General Magic Board of Directors. The two companies also announced a technology development and licensing agreement under which OnStar will pay a one-time, royalty fee in the amount of $5 million and recurring technical support and hosting fees for use of General Magic's network operations facilities to host a customized version of General Magic's magicTalk(TM) voice-user interface. -more- freeedgar.com It will be very interesting to see the details of the convertible G series prefered stock in any ensuing filings. I see they are non- redeemable voting shares. Evidently this deal has done more than just "replace the last deal" at first glance. Regards, John Madarasz