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Gold/Mining/Energy : American International Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: PJY who wrote (6151)	1/1/1998 12:06:00 PM
From: Sycamore	Respond to of 11888

PJ, To be honest with you, I didn't have much and didn't buy the warrants to convert, but for leverage. Hoping that in case the common goes to $10 before March 1 the warrants could be worth $6.50/share at least. At which point I'll sell. Can't answer some of your questions for I don't know the answers to them for sure, but this I know that if the warrants are not extended and they are allowed to expire by March 1 without being exercised it becomes worthless. Also, at $4.00 conversion, with 6,000,000 shares floating the company stand to gain 24,000,000 dollars if holders convert. The only disadvantage that I see if the latter scenario occur is more dilution on the common. As you know, Wall Street doesn't like that. On the other hand, should the company decide to call the warrants, then the AIPN stock price should trade at $8.00 or higher starting January 14-15. Why? Because based on its SEC Filings, if this is the plan that AIPC wants to take, then it is required that its common share price be trading at a min 8.00 dollars for 20 consecutive days. On top of that, AIPC needs another 15 days to notify shareholders of its intention. So, roughly we are looking of about 45 days grace period for the company to get the job done prior to the March 1 expiration or roughly Jan 14-15. Actually, if this is what the company intends to do, it will be very bullish for the stock. Hope it helps and good luck. Happy New Year! Sycamore

To: PJY who wrote (6151)	1/3/1998 2:09:00 PM
From: Sycamore	Read Replies (1) \| Respond to of 11888

Additional explanation to post "#6152" on the Subject of Warrants: Apparently the same post was uploaded to AOL, and somebody had interpreted it differently. Perhaps, I should have explained it much more clearer. My apology, anyway here goes: A) First Scenario - Company redeeming the warrants: Since AIPC needs roughly 45 days (trading at an average of $8.00 or more for 20 consecutive days + weekends + 15 days written notice) to satisfy the requirements filed with the SEC before it can redeem the warrants due to expire on March 1, 1998, its common should start trading at $8.00\$8.00+ soon or as early as today with mid-January at the latest. The sooner the above requirements are met the sooner the Company can call the warrants before March 1, 1998, current date + 45 days of course. Meantime, after reading the August 13, 1997 Press Release, given a favorable chance, I think we can't discount the possibility that the company may do it again. Now, it may or may not be the intention, but assuming it is considering a good Wavetech numbers and the possibility of a more lucrative JV, it would be very bullish for the stock; both short and long term. Extracted portion of the 8/13/97 official press release: "<<The Company said that during 1997 it has redeemed in case certain debentures which would have otherwise been convertible into approximately seven million share of the Company's common stock.>>" B) Second Scenario - Class A Warrant Holders exercising their options Warrant holders can exercise their rights to convert to common at any given time through March 1, 1998 potentially providing the company with roughly 24 million dollars in the bank. The disadvantage of course is more share dilutions for the common. Also, with a share price below $8.00, say around $5.75, there may not be that much incentive to convert considering the cost factor associated with the process ($1.75costofwarrants+$4.00premium to convert). For instance, if the prospective holder of warrants buys it here, the risk to the owner of course is if the stock continue to trade at\below $5.75 througout March 1, 1998. In short, though the warrants may provide more leverage and better return if the stock goes to double digits, it is without a doubt a lot more riskier to have than the common. From here, the next 30 days will be very interesting to watch. Happy New Year! Sycamore