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Technology Stocks : Acrodyne (ACRO) is one of two pure plays in the TV -- Ignore unavailable to you. Want to Upgrade?

To: Jim Wilke who wrote (807)	11/12/1997 8:42:00 PM
From: Eric Hautala	Read Replies (1) \| Respond to of 1319

Here's what doesn't add up to me... Acrodyne doesn't need the money. Why would someone do this deal if they didn't need the money? I keep on reading this.... +++++++ A. Robert Mancuso, Chairman and CEO of Acrodyne Communications, Inc., commented: ''Our priority is to address the requirements of television broadcasters by supplying innovative and cost-effective solutions in a changing market. This investment will enable us to develop new opportunities in our existing business and acquire complimentary product lines and businesses.'' Mr. Mancuso added: ''This investment also strengthens the Company's balance sheet at a critical juncture in our industry and positions the Company to respond to the needs of its customers in the high power and digital transmission markets. It provides us with the financial stability and resources for growth, as well as a strategic link to financial partners who have been instrumental in the development of a significant number of successful companies in the communications field.'' +++++++ Sounds like acquisition talk to me but $2M only buys you 15% of a microcap (as we now have seen). Combine it with the cash on hand and maybe you could buy a line of products from someone but nothing big. My guess is that this PP is just the commission, they diluted us in order to bring in some bigger players and pay them - that's all, more dilution or stock monkey business is on the way with their acquisitions. What's going here - this sounds too bad to be true. ~

To: Jim Wilke who wrote (807)	11/12/1997 8:52:00 PM
From: Robert Florin	Respond to of 1319

So will some one please come forward and explain what this "deal" is all about. THere is now another announcement from the company published on Reuters. Here it is: "Acrodyne Communications Inc said Wednesday an investor group consisting of Scorpion-Acrodyne Investors LLC and the Newlight Associates funds, acquired $2 million in company common stock and warrants. The purchase consisted of 800,000 newly issued shares of the company's common stock bought in a private placement and 300,000 warrants exercisable for five years at $3.00 per share, the company said in a statement. The television broadcast equipment company will use the $2 million in funds to develop its existing business, acquire complimentary product lines and businesses and strengthen its balance sheet. The common stock represents 15 percent of the issued and outstanding shares after the transaction. The investor group's shares are subject to a one year restriction on resale." All of a sudden the new investor group is as follows: "an investor group consisting of Scorpion-Acrodyne Investors LLC and the Newlight Associates funds" I thought I was an Acrodyne investor. How come I'm not getting such a sweet deal? There better be a convincing reason as to why this deal is happening. Not only has the stock been diluted 17.7% of the shares outstanding (not, btw, the initial 10% posted and now amended to 15%), but the future dilution for the warrant execution is another 10%. That brings the total dilution to 27% for a lousy $2 million. What is going on here? The market cap on the 4.5 million shares as of yesterday was $18 million. Today, after this $2 million "deal", the market cap drops at least $3 million. Be prepared for further downside after 4th qtr earnings, end of year tax loss selling and more people who become disillusioned sell, much like Jim Wilke is considering.