To: Zeev Hed who wrote (1258 ) 12/6/2000 12:30:47 PM From: Puck Read Replies (1) | Respond to A company called Cellpoint (NASDAQ: CLPT), which I have a small holding in, just raised $10 mil. in financing by issuing a convertible note to Castle Creek Technology Partners brokered by Ladenburg Thalman. The 8-K has yet to be filed so I don't have any more information than what can be found in the press release. I'm trying to figure out how problematic this financing might prove to current shareholders (and thus whether or not to keep my shares) and would appreciate any thoughts you might have about the deal. The press release seems quite unclear to me about the timing and terms of the conversion but does say that the conversion price can be reset to 90% of the market price depending upon when the debenture is converted. Can't tell if there is a floor. I think it is quite positive that the debenture was sold to a single purchaser. Don't know what reputation Castle Rock Technology Partners has but a quick search on the internet hasn't turned up anything negative so far. They appear to have participated in many financings of small and growing technology companies. The stock prices of these companies have often performed poorly or mediocrely. Of the companies that are publicly traded, a search of their press releases hasn't turned up any notices of litigation against Castle Rock Partners, which is positive. Ladenburg Thalman is quite a reputable investment bank, which encourages me also. Here's the press release.
