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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: golden_tee who wrote (25451)	3/15/2002 7:36:24 AM
From: LiPolymer	Respond to of 27311

Hi Bob, using the term floorless at all for this type of financing is inaccurate and misleading IMHO, because it conveys an unfair sense of negativity. I believe the term floorless should only be used when the conversion ratio from the preferred instrument to common shares can become a boundless and variable function of the future share price. There have been many of these financings similar to the recent one with CB, and, although I believe this latest one is at the lowest price, at least one (Capital Guardian) was done well above $10. The dilution is not great, but at least we know the threshold of pain around the time the deal is cut, unlike the second tranche of the Castle Creek preferred which was truly a floorless. Regards, Gary.