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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: MadMax who wrote (25802)	11/19/1997 8:39:00 PM
From: Marshall	Respond to of 33268

I'll beat Drakes to this one - that never stopped anyone before in this type of offering. It all depends on who you're dealing with more than anything.

To: MadMax who wrote (25802)	11/20/1997 12:45:00 AM
From: drakes353	Read Replies (1) \| Respond to of 33268

MadMax: Scanned the releases, drakes errored on one thing, there is a 6 Month restriction against shorting the preferred stock granted. No help here for at least 6 Months drakes!!! Rule #1 Read and understand document before pressing "!!!" Rule #2 See Rule #1 On page 17 of the Securities Purchase Agreement it lists the exceptions to the provision preventing short selling. FYI, they wouldn't be shorting the preferred stock, they would be shorting the common against the preferred. The way it's laid out it looks like it could keep a cap on any rallies. I'm sniffing around for a discount and the only place I see one mentioned is if RACE drops down to the NazSmallCap list (20%) or they fall to the BB (40%). Took a quick look at the Naz listing requirements and it looks like they are in compliance so that shouldn't be an issue. Can't say as I've ever seen that language listed in one of these deals. Strange. I have not seen RACE tell us what the total sale proceeds of the deal were. I'm assuming they paid something like $300,000 to the underwriter yielding cash of $4.7 million. A 6% comish is usually the norm with these deals. Anyone know the exact dollar amount RACE took in? drakes353 PS - Glanced at the proxy. What, no Johnny Thunder*** on the slate? Oh, and mark those proxies properly, you want to vote "FOR" on Item 3, otherwise you're up the creek.