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Technology Stocks : Mbrane (NASDAQ: MBRN) - An enterprise solution? -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (768)	1/10/2000 5:43:00 PM
From: Shinie	Read Replies (2) \| Respond to of 1238

FAQ: centurasoft.com Centura acquires $12.5M in additional financing - FAQ Q: Is this a good thing for Centura common stockholders? A: Yes. The preferred stock instrument has been designed to align the interests of the preferred stockholders with the interests of the common stockholders. Q: What exactly do you plan to use the money for? A: The incremental financing will help Centura on a number of strategic fronts. The funds are earmarked generally for our Information Appliance and e-Business strategic business units to support market and channel development activities, product development and acquisition of technology. In addition, some of the funds will be used for a new internal enterprise information system and for general working capital. Q: What is meant by "conversion ceiling price"? A: This is the maximum rate at which the preferred stockholders can convert preferred stock dollars into common stock. Q: Is "conversion ceiling price" the same as strike price? A: Yes and no. Under the terms of the preferred stock, if the preferred stockholders convert during a period when the common stock is trading below the ceiling conversion price ($5.82) the preferred stockholders can convert at the then current market price of the common stock. If the common stock is trading above $5.82 then the preferred stockholders would be still be able to convert at the ceiling conversion price. For example: If the common stock is trading at $10, the preferred stockholders can still convert at the rate of $5.82 (this is like buying common stock at $5.82) such that $1,000 worth of preferred stock would convert into approximately 172 shares of common stock. If the common stock were trading at $5.00 the preferred stockholders would be able to convert at $5.00. Q: What is meant by "conversion at the option of the company for a period of 10 months from issuance"? A: This means that the Company can require that the preferred stockholders convert into common stock. Q: How dilutive is this to common stockholders? A: Conversion of 100% of the preferred at the ceiling conversion price of $5.82 would require Centura to issue approximately 2.1M shares of common stock, or approximately 5.7% of the current 37M shares outstanding. Q: Do you plan to do more deals of this type? A: We have no plans to do so currently. We will however, continue to evaluate our financing needs and various mechanisms to achieve such needs on an ongoing basis