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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Jane4IceCream who wrote (79841)	2/28/2000 3:08:00 PM
From: marquis103	Respond to of 108040

HHGP. this must be driving the stock up. Using part of it's SQST stock to pay off debt and leave itself debt free. Russ Monday February 28, 2:41 pm Eastern Time Company Press Release Harris & Harris Group to Pre-Pay $3,000,000 Note NEW YORK--(BUSINESS WIRE)--Feb. 28, 2000--Harris & Harris Group, Inc. (NASDAQ/NMS SYMBOL:HHGP - news) announced today that it intends to pre-pay the $3,000,000, one-year, 12% note that the Company issued in January of 2000 to an unaffiliated investor. The one-year warrants issued with this note, to purchase 25,263 shares of Harris & Harris Group common stock at $11.875 per share, will remain outstanding. Harris & Harris Group will pre-pay this indebtedness from the proceeds of its sale of 43,400 shares of SciQuest.com, Inc. common stock (NASDAQ: SQST - news) at $77.264 per share on February 25, 2000. Harris & Harris Group continues to hold 417,639 shares of SciQuest common stock, at a cost basis of $1.84 per share. Because Harris & Harris Groups intends to use the proceeds of the SciQuest.com sale to prepay indebtedness, the realized long-term capital gains from this sale, approximately $3.3 million, will be retained by Harris & Harris Group and will not be distributed to shareholders as a cash dividend. This transaction will impact Harris & Harris Group's net asset value per share (NAV) in the following ways: the sale price of the SciQuest.com shares was $2.24 per share below SciQuest.com's closing price in 1999 and $6.05 above Harris & Harris Group's discounted carrying value for its SciQuest.com shares on that date, the last date for which Harris & Harris Group calculated its NAV; the Company will save approximately $330,000 in interest; and the Company will increase its tax reserve by approximately $1 million. The net effect will be to reduce Harris & Harris Group's NAV by an amount on the order of $0.04 per share and leave the Company debt free. Harris & Harris Group is a Business Development Company with 9,240,831 common shares outstanding. Detailed information about Harris & Harris Group and its holdings can be found on its Website at hhgp.com.