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

To: Zeev Hed who wrote (25456)	3/15/2002 9:08:30 AM
From: John Curtis	Read Replies (1) \| Respond to of 27311

Zeev: Everytime VLNC wants to draw on that $30 MM line of credit, Berg will get stock (or right to stock) at a conversion rate with a customary discount to the "then" market value (probably a trailing average), this is a floorless, whatever benign intentions Berg might or might not have. You are quite right. However, though I'm not necessarily defending the company, I think you're pushing the envelope on this one. Berg isn't a hedge fund. It doesn't appear he's interested in extracting his percentage without regard for underlying company merit. Indeed, his history, where VLNC is concerned, indicates he's more interested in a supporting role. This is (as HC indicated) bolstered by recent board member buying, wherein I've got to assume board members openly communicate with each other. Therefore, if I was investing in VLNC, I wouldn't be overly concerned with Berg's most recent efforts. I'd be more concerned if management had reached an agreement, instead, with another Castle styled fund.... John~

To: Zeev Hed who wrote (25456)	3/15/2002 9:17:21 AM
From: LiPolymer	Respond to of 27311

Zeev, agreed the conversion rate each time the company draws on the line is not fixed at this time, to correct my earlier statement. Even so there would be no advantage for CB to drive down the PPS, as in a floorless a la CC, because he would be destroying his existing equity with dilution in the process. As long as CB isn't selling, there is some "safety", and CB has only sold less than 100k shares through a related trust to date AFAIK. So, unless this is part of some nefarious conspiracy to steal the company from the shareholders as has been intimated by a certain party, I believe we are OK as long as CB keeps holding. He must see something on the horizon to keep stepping up to the plate. Regards, Gary.