100% participation rate (assuming all preferred shareholders will participated in the conversion)
Preferred Shares Average price Converting price New common shares
Dollars value (bid and ask) (90%)
13,164,000.00 0.20 0.180 73,133,333
13,164,000.00 0.18 0.162 81,259,259
13,164,000.00 0.16 0.144 91,416,667
13,164,000.00 0.14 0.126 104,476,190
13,164,000.00 0.12 0.108 121,888,889
13,164,000.00 0.10 0.090 146,266,667
13,164,000.00 0.08 0.072 182,833,333
13,164,000.00 0.06 0.054 243,777,778
13,164,000.00 0.04 0.036 365,666,667
13,164,000.00 0.02 0.018 731,333,333
50% participation rate (assuming only 50% will qualified for conversion)
Preferred Shares Average price Converting price New common shares
Dollars value (bid and ask) (90%)
6,582,000.00 0.20 0.180 36,566,667
6,582,000.00 0.18 0.162 40,629,630
6,582,000.00 0.16 0.144 45,708,333
6,582,000.00 0.14 0.126 52,238,095
6,582,000.00 0.12 0.108 60,944,444
6,582,000.00 0.10 0.090 73,133,333
6,582,000.00 0.08 0.072 91,416,667
6,582,000.00 0.06 0.054 121,888,889
6,582,000.00 0.04 0.036 182,833,333
6,582,000.00 0.02 0.018 365,666,667
Summary:
Looking at the table above, the best scenario for the lowest dilution on 07/16/01 will be 36M new shares (assuming there will be only 50% preferred shareholders participation in the conversion, at a high average converting price of 20 cents).
Au contrary, the worst scenario for the highest dilution on 07/16/01 will be 731M new share(assuming there will be 100% preferred shareholders participation in the conversion, at a low average converting price of 2 cents).
The true number of the new dilution shares will be somewhere in between the two figures of highest and lowest above. Regardless of the real outcome, the dilution will be severed and will definitely have an impact on the PPS. |
