Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Jdaasoc who wrote (74909)	6/25/2001 2:23:03 PM
From: Bilow	Respond to of 93625

Hi Jdaasoc; Re Samsung warrants... You're right! Those warrants are only exercisable if Intel makes their goals: In October 1998, the Company's Board of Directors authorized an incentive program in the form of warrants on a total of up to 1,600,000 shares of Rambus common stock (the "DRAM incentive warrants") to be issued to various Rambus Direct DRAM partners upon the achievement of certain product qualification and volume production targets. The warrants, to be issued at the time the targets are met, will have an exercise price of $2.50 per share and a life of five years. They will vest and become exercisable on the same basis as the Intel warrant, which will result in a non-cash charge to the statement of operations based on the fair value of the warrants at the time the achievement of the Intel milestones becomes probable. As of June 30, 2000, a total of 760,000 of these warrants had been issued. ... biz.yahoo.com That finally explains NEC's response to getting the warrants, and makes this article a bit more understandable: Rambus uses stock to spur RDRAM output Anthony Cataldo, EE-Times, March 21, 2000 ... NEC reached certain shipment goals of RDRAMs and Rambus-in-line memory modules (RIMMs) to PC makers to qualified to receive the stock warrants, which enable NEC to purchase 30,000 shares of Rambus for less than the market price, according to Rambus. NEC, for its part, reacted coolly to the Rambus announcement, stating that Rambus had unilaterally decided to make the information public. NEC had always intended to be a leading producer of Direct Rambus DRAMs, an NEC spokesman said. NEC's ability to get its hands on some discounted Rambus stock, which has pushed past $400 a share in recent weeks, won't influence its DRAM production decisions, the spokesman said. "It's a nice pat on the back. That's about it," he said. ... eetimes.com In other words, since NEC knew that Intel would be unable to achieve the milestones, they figured the warrants were unlikely to vest, and thought of them only as a "pat on the back", even back when RMBS was trading at $400 per share. -- Carl