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

To: Zeev Hed who wrote (1278)	2/27/2001 8:11:11 PM
From: Teddy	Respond to of 1438

Here's a nice way to screw "common" shareholders without them knowing it: Message 15420996 highlights STOCK PURCHASE WARRANTS. Concurrently with the execution of the Strategic Alliance Agreement, Service Systems granted three Stock Purchase Warrants to U.S. Filter/Wallace & Tiernan for an aggregate of 3,000,000 shares of Service Systems' common stock, as follows: - 1,000,000 shares at an exercise price equal to the lower of $0.97 per share or the "Fair Market Value" of the common stock as of April 25, 2001; - 1,000,000 shares at an exercise price of $1.00 per share; and - 1,000,000 shares at an exercise price of $2.00 per share. The warrants may be exercised from time to time from October 3, 2002 up to and including October 10, 2010. If the Strategic Alliance Agreement is terminated for convenience, the warrants will expire on the second anniversary of the effective date of that termination. In addition, on January 25 of each year during the term of the Strategic Alliance Agreement, Service Systems will grant to U.S. Filter/Wallace & Tiernan additional warrants to purchase Service Systems common stock, based upon the orders for Systems booked or significantly influenced by U.S. Filter/Wallace & Tiernan during the preceding 12 months. Provided at least US$1,000,000 of orders for Systems have been booked or influenced, each warrant will permit U.S. Filter/Wallace & Tiernan to purchase 50,000 shares and also 500 shares for each US$10,000 of orders for Systems booked or significantly influenced by U.S. Filter/Wallace & Tiernan in excess of US$1,000,000 during the preceding 12 months. The exercise price per share reflected in each additional warrant will be the "Fair Market Value" of Service Systems common stock, determined as of the date of grant of the additional warrants. The cumulative number of shares for which these warrants may be granted will not exceed, in the aggregate, 20% of issued and outstanding shares of Service Systems' common stock at the date of the grant. What a shame. This well managed company was just about to reward it's long term investors by capitalizing on it's unique patented technology and first mover advantage in a rapidly growing market. <hack hack gag puke> 2 weeks ago, this stock was recomended as a "buy" by a penny stock hype news email. This is the 4th of the last 5 stocks that they hyped that has revealed "creative financing" a couple of days after the pump. My account in Can-A-Da is now open and funded. Looking forward to joining the boys riding the "dump" cycle of these scum companies.