Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : OILEX (OLEX) -- Ignore unavailable to you. Want to Upgrade?

To: edward shapiro who wrote (2480)	1/13/1998 12:44:00 PM
From: John Rowe	Respond to of 4276

Mr Shapiro, It's been a number of years since my last math class, but by my calculations, IF both offerings are fully completed, stock price doen't change, and all are converted to common stock, the required dilution of my stock exceeds 100% (appr 45 million now, appr 46 million to be issued, pre-split). Or, IF $175,000 is total offering, and all is converted into stock (at 65%, I imagine it will be!), the required dilution is something on the order of 13% (45 million now, plus 6 million new, pre-split). Of course, if stock price declines, it could be worse. Is this correct? Please tell me if total of this offering is $175,000 or $1,350,000. Either way, looks bad for my position. Thanks, John R.

To: edward shapiro who wrote (2480)	1/13/1998 12:52:00 PM
From: Ajay	Respond to of 4276

Edward's right. The amt was for $175k and that's it (imo from the 8-K's). I know all the naysayers would like to read more into it but that's it.

To: edward shapiro who wrote (2480)	1/13/1998 12:53:00 PM
From: Ditchdigger	Read Replies (1) \| Respond to of 4276

Ed, My guess is,they used the term amended to reflect that fact that the placement was also completed and closed for the $175,000 in debentures (explains the high volumes we were seeing...DD

To: edward shapiro who wrote (2480)	1/13/1998 1:21:00 PM
From: Prudent Investor	Read Replies (1) \| Respond to of 4276

Ed, you are right. The amended S8 does say that the offering is concluded. If that is in fact the case, then the number of shares that would be converted on the basis of the present price is approximately 5,982,900. That still exceeds the number of authorized shares by approximately 468,000. All of this assumes that the powers at Oilex are going to resist the temptation to go to the well again with more convertible debentures. After all, it has worked more than once, why not keep doing it? Of course, maybe the "Holder" of the convertible debentures does not have any intention of converting. Maybe they will be happy with a 12% return on their money. Maybe pigs will fly, too.