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Technology Stocks : LUMM - Lumenon Innovative Lightwave Technology Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Don Johnstone who wrote (1929)	7/30/2000 11:06:04 AM
From: jjs64	Read Replies (2) \| Respond to of 2484

You're a bit testy today DJ. Face it, this is a LOSER of deal of LUMM and the LUMMiots who are foolish enough to hold the common stock. And if there are any new shorts, they are most likely your new "investors" in the converts. Mr. Sherman is 100% correct that this deal was put together as yet another scummy Vancouver OTCBB reverse merger POS. Remember the whole thing was put together by the esteemed Mr. Mikulic BTW, S-words, my statements were based on an "as-if vested" or "standstill" assumption....since that if vesting were to occur on the day they made the deal, the warrants would be at $10. There is absolutely NO WAY to spin this deal as a positive, it's a massively high-priced convert with cheap warrants thrown in as a sweetener. Buyer Beware!

To: Don Johnstone who wrote (1929)	7/30/2000 12:17:26 PM
From: wonk	Read Replies (1) \| Respond to of 2484

...Do you have the link to back that up, or is this just opinion? Um, I think you need to read the fine print, ALL of the fine print. Just as an example: ... In addition, upon the occurrence of an Event of Default, if the Corporation receives from any Holder a Default Notice (as hereinafter defined) and demands all amounts immediately due and payable hereunder, the Floor Price shall permanently be reset to $.001 and not be subject to any further adjustment pursuant to Article VIII hereof or otherwise, and the Vesting Date (as defined in the Warrants) shall be deemed to have occurred, thereby rendering the Warrants immediately exercisable in accordance with their terms. Following the submission of a Default Notice, the Holder of this Note shall have the right to continue to submit Notices of Conversion and to convert this Note until such time (if any) as the Corporation pays to the Holder the Default Amount.... edgar-online.com More like that. Happy reading. ww

To: Don Johnstone who wrote (1929)	7/30/2000 1:54:34 PM
From: P. Ramamoorthy	Read Replies (1) \| Respond to of 2484

Don, My first experience with Castle Creek's MO was in VLNC and WSTL investments, last year. VLNC thread on SI last year (Jul-Oct period) gives a detailed discussion of the floorless conversion financing and the "orchestrated" short sales of VLNC. The "longs" felt that the short sales and Castle Creek were somehow connected. They closely monitored short sales, Castle Creek's conversion price according to the formula, etc. Conversions took place as longs expected. Castle Creek does not go long. They get their $ out fast and move on to the next deal. Too much information to summarize here. You will get more information on Castle Creek if you post a question in the VLNC thread (SI). For LUMM's case, this poster hit the nail on the head. ragingbull.altavista.com WSTL went through a similar financing deal but they did not experience the heavy short attack like VLNC did. Both companies had good technologies and were desperately in need of financing. VLNC was trying to commence commercial production and needed Purchase Orders to convince the Street. LUMM is in a similar situation: they need to commence production, get products accepted, and get Purchase Orders, besides Molex. If LUMM meets the production deadlines and generates purchase orders/revenues, the longs may turn out to be OK in the end. I do wonder why LUMM management chose this source of financing. The best proof for Castle Creek's MO will show in LUMM share price in the next 18 months and short interest. I'll not be surprised it the price dives to the floor conversion price $10 or whatever, giving time to cover the shorts later. It does present some opportunities in shrewd investing in LUMM if the Castle Creek's history repeats. The LUMM Board will become more active. Ram