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

To: Mike Maxton who wrote (1136)	2/10/2000 12:53:00 PM
From: CMason	Read Replies (1) \| Respond to of 1438

Mike -- Took a quick look at the SCUR 8-K, and it looks floorless to me: (b) Determination of Conversion Price. The Conversion Price applicable with respect to the Preferred Shares in each Tranche (the "Conversion Price"), shall be the lesser of: (A) a price equal to 20% above the Market Price (as defined below), as adjusted as set forth below (the "Fixed Price") or (B) 98% of the average of the two lowest daily stock trade prices ("Low Trade Prices") of the Common Stock recorded on the Principal Market (as defined below) during the six (6) consecutive Trading Days (the "Purchase Price Period") ending on the day prior to and not including the Conversion Date. Using the lowest daily stock trade prices, rather than closing prices, is a new one for me, and looks remarkably susceptible to manipulation. Don't know enough about the company's situation to offer an investment opinion, but this financing looks like a red flag. Regards, CMason