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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: iceburg who wrote (14462)	2/19/1998 9:01:00 AM
From: trendmastr	Read Replies (1) \| Respond to of 29386

"we are pleased to have the new series c stock in the hands of patient series B holders" hendricksen "litton promising" "similar to AWACS application" "IBM testimony to fibre channel""fibre channel getting much mor epopular" - have moved from early discussions with certain OEM to shipping test productions switches" nelson I want to reaffrim optimism about coming year- hendricksen

To: iceburg who wrote (14462)	2/19/1998 11:06:00 PM
From: Eleder2020	Read Replies (2) \| Respond to of 29386

Seems like the financing may have some kind of floating conversion rate based on the price over the next 30 days and when the series C stock are converted to shares. Seems like the minimum conversion was 12 even if the stock was 8 forever and if the stock was higher they had a maximum price between 9 and 13. Anyone conjure up an explanation. Ken seemed confidence and appeared to be saying that they expected Ancor to perform and that they felt that this performance would help Ancor reach the $9-13 range for minimum dilution.No? Does ANCR pay the difference in the conversion if ANCR is still at 8 whenever the conversion takes place. Now it would seem that there is at least incentive for the Series C holders to not hurt the stock as it would actually erode their series B holdings and not help their series C as they seem to have a minimum conversion. It would actually hurt them as the dilutive effect would hurt their Series B.It seems the best case scenario is for a higher stock price for the Series B & C holders if you take their combined holdings. Just PONDERING out loud and playing out different scenarios for those shares. I'm probably having delusions but I don't think that this round of financing has much of an advantage in the stock going down for the holders of B&C. If they get more shares by ANCR being at $5 it hurts their profits for their Series B over the long term as more dilution hurts the share price of that stock in the long haul. It makes sense that they go with the faithful series B stockholders.They actually have something to protect. An other explanations appreciated, Ed