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Gold/Mining/Energy : International Precious Metals (IPMCF) -- Ignore unavailable to you. Want to Upgrade?

To: Gerald Walls who wrote (27391)	11/18/1997 1:25:00 PM
From: Proton	Read Replies (1) \| Respond to of 35569

Re: Last one out. . . ... please turn off the lights: 2 1/8 down one point on 465,000 shares. Pý

To: Gerald Walls who wrote (27391)	11/18/1997 1:33:00 PM
From: Lee Bush	Read Replies (1) \| Respond to of 35569

Gerald: Thank you for stepping in with the specifics. I don't see the incentive for the bondholders to take over a company that has a very uncertain future, no assets of any value other than the land claims. Perhaps I am missing something here. Is there some deep dark secret that management is holding back? Is there a production system in the wings that can product economically? A lower gold price certainly doesn't help, unless the process is extremely efficient to enable them to be a low-cost producer. I'm not ruling that out, just looking for answers to the valuation that was placed upon this company by supposedly savy institutional investors and bankers. Lee

To: Gerald Walls who wrote (27391)	11/18/1997 1:37:00 PM
From: Bob Markley	Respond to of 35569

<< It looks to me that since the bond holders will receive $10M worth of stock regardless of the price then they would benefit from a lower stock price as long as the company is still a going concern. >> Exactly, ... it would be massive dilution of existing shareholders under your scenario. One has to also think that the buyers of the convertible issue would have to be different institutions then current ??