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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1036)	11/17/1999 2:42:00 PM
From: Gator II	Read Replies (1) \| Respond to of 1438

Zeev...a voice from the past. It appears GENZ is buying out the floorless convertible security holders of GZTC for a 15% premium. GENZ is parent and 33%+ owner of GZTC's common. Interesting patterns from time floorless was put in place until today. Convertible holder should be out of picture unless they take the stock thus having huge overhang of stock for sale. Would appreciate your thoughts on what is apparently a fairly rare occasion and what may have precipitated GENZ's action at this time. It would seem the timing may coincide with GZTC perhaps being about to receive FDA approval of a drug they have winding through the various clinical phases. GatorII

To: Zeev Hed who wrote (1036)	11/20/1999 2:32:00 PM
From: George Dawson	Respond to of 1438

Zeev, I am wondering about the percentages in general? Are they known for NASDAQ small cap or BB stocks in general? Has anyone done any academic studies of the failure rate or longevity of these companies based on any specific independent variables? I guess I am wondering about the baseline percentages, even before the high risk financing. Thanks, George D.

To: Zeev Hed who wrote (1036)	11/20/1999 7:47:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 1438

Although, viewing PPRTs numbers and recent developments, it doesn't surprise me, because they are in acute danger. They are in default, they have a waiver until the end of november, so to say the VCs (have to) use the downside, rather then the upside (by exercising their sweeteners) to return their money. In September 1999, the company received a notice from the bank that it was in default of its credit agreement. In November 1999, the Company and the bank entered into a Forebearance Agreement that provided among other things, that the Company pay principal and interest in an amount equal to $1,587,000 and maintain a cash balance in excess of the loan amount due to the bank. The Forebearance Agreement expires November 30, 1999. No further advances are available to the Company under the credit agreement. biz.yahoo.com