To: Dave Gore who wrote (5479 ) 4/10/1998 12:30:00 PM From: Andrew H Read Replies (1) | Respond to of 34592
David, there is some misinformation in your IFLYW post which I would like to correct for the benefit of those who hold IFLYW. EXPIRATION: JAN. 13, 2003 (i.e. no factor to worry about) STRIKE PRICE: $6.25 CALLABLE: at $10 per share *******MAXIMUM GAIN******************$3.75 per warrant *******CURRENT PRICE*************about .78 per warrant (as of now) That's an 4 bagger. And you have nearly 5 years for the stock to appreciate to that level (i.e. $10) Yes, you have almost 5 YEARS for this stock to reach $10 and get your $3.75 per warrant (i.e. nearly an 450% GAIN from current levels) or you can sell the warrants anytime along the way just like a stock. If the stock itself appreciates to a level of $10 or more for 7-10 days (i.e closing price at $10 or above), the Company has the right to call them and pay you $3.75 per warrant purchased. << There are some mistakes in the above analysis that investors should be aware of--if these have been corrected in a prior post, please ignore. Fist of all, the potential upside for IFLYW is not necessarily limited to $3.75, although that would be their approximate value with the stock at 10. Chances are good that if and when the stock closes above 10 for 7-10 consecutive days, that the price of the stock may reach 11, 12, or more during that period. In that case the warrants would trade for approximately 4.75, 5.75, etc., depending on the price of the common. Furthermore, for a variety of reasons (c.f., TAVA), the warrants may not be called right away, and even if they are, they will probably trade in the open market for a few weeks after they are called (since the company will most likely allow 30 days for warrant conversion}, so their value could appreciate even more. There is no specific upside limit, and the actual warrant price will depend on the price of the stock. If the common reaches 15 before conversion is required, the warrants could conceivably sell for 8.25 (unlikely, but possible).Finally, the company will NOT be paying anyone 3.75 for the warrants. Warrant holders will be paying the company 6.25, which along with one warrant will buy them one share of IFLY. The above is my best understanding of the current situation and is posted for the benefit of cafe patrons and friends. Please verify for yourselves. One should always ascertain for himself the exact and correct information regarding the securities in which he is investing.