Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : American Superconductor (AMSC) -- Ignore unavailable to you. Want to Upgrade?

To: Ram Seetharaman who wrote (315)	1/22/2000 11:09:00 PM
From: Wafa SHIHABI	Read Replies (1) \| Respond to of 973

Thx Ram It is quite impossible to forecast where any of the SC's will get to, without some deep and detailed knowledge of their markets' feedback. The only thing I can look at is the size of market each is addressing, and the fact that their acceptance in each of these markets is far more advanced than where it was say a year ago. Any kind of success in obtaining contracts in 2000 will aid in answering the first issue more deffinately. Only then will a forecast price will mean anything. As for financing, don't forget that several of them have had to obtain rescue funding at the cheapest level in their life path. For example ISCO's rescue package loaded it with convertibles at $0.25. I don't recall the exact numbers, but the resulting dilution is on the order of 6:1. Luckily, that process had brought its price down from the $3 range to $0.30 over the past year, so that that dilution is already priced in. The fact remains that all ISCO can obtain out of that round of funding is maybe $10m at most. Compare that to AMSC which can now issue 1m shares and obtain $35m for it in a flash. Seeing they still have enough cash to treat their current burn rate for another few quarters, I expect they will only do it at above the $50 price level. Hope this answers your question.

To: Ram Seetharaman who wrote (315)	3/1/2000 11:49:00 AM
From: Wafa SHIHABI	Read Replies (1) \| Respond to of 973

Ram, Guess I was a bit too modest in my response (316): "Compare that to AMSC which can now issue 1m shares and obtain $35m for it in a flash. Seeing they still have enough cash to treat their current burn rate for another few quarters, I expect they will only do it at above the $50 price level." Following announcement out today: American Superconductor Announces Pricing of Public Offering of $218,750,000 of Common Stock WEDNESDAY, MARCH 01, 2000 10:15 AM - BusinessWire WESTBOROUGH, Mass., Mar 1, 2000 (BUSINESS WIRE) -- American Superconductor Corporation (Nasdaq:AMSC) announced today that it has set the price for the public offering of 3,500,000 shares of its common stock at $62.50 per share. Closing of the offering is scheduled for March 6, 2000. The net proceeds from the offering will be approximately $205,175,000. American Superconductor intends to use the net proceeds of the offering for equipment, a new plant for manufacturing HTS wire, a new SMES systems manufacturing facility, to pay costs associated with designing and manufacturing HTS motors, as well as general corporate purposes. Banc of America Securities LLC is acting as the managing underwriter for the offering. Co-managers are CIBC World Markets and Robertson Stephens. American Superconductor has also granted the underwriters an option exercisable up until March 30, 2000 to purchase up to an additional 525,000 shares of its common stock at a price of $62.50 per share, solely to cover over-allotments, if any. Note: The offering of the common stock may be made only by means of a prospectus. A copy of the prospectus may be obtained from Banc of America Securities LLC, 600 Montgomery Street, San Francisco, CA 94111. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. American Superconductor American Superconductor Corporation, headquartered in Westborough, Mass., was founded in 1987 and is a world leader in developing and manufacturing products utilizing superconducting materials for electric power applications. The company's products, and products sold by electrical equipment manufacturers that incorporate our products, can dramatically increase the capacity and reliability of power delivery networks, significantly reduce the manufacturing costs of electrical equipment such as motors and generators, lower electrical operating costs and conserve resources that are used to produce electric power. Copyright (C) 2000 Business Wire. All rights reserved. Distributed via COMTEX. -0- CONTACT: Media Contact Kevin Coates 202-457-9400 kcoates@amsuper.com or Investor Contact Stan Piekos 508-621-4220 spiekos@amsuper.com