As you can see, most of the sellers are not really unloading . . . .
Ownership Beneficial
Prior to Shares Included in Ownership After
Name Offering (1) % This Offering (2) Offering %
---- ------------ - ----------------- -------- -
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
Banca del Gottardo 3,042,271 16.3 1,076,666(3) 1,965,605 10.6
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
William C. Samuels 3,770,817 21.5 625,000(4) 3,145,817 18.5
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
David Reese 437,500 2.5 330,000(5) 107,500 *
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
Bruce Crowley 305,000 1.8 201,000(6) 104,000 *
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
Elliott Associates, L.P. 2,081,711 11.0(7) 172,955(8) 1,908,756 10.2
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
Westgate International, L.P. 1,914,948 10.2(7) 93,971(9) 1,820,977 9.7
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
Eric Martinez 11,817 * 11,817(10) 0 *
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
James Crook 74,294 * 25,000(11) 49,294 *
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
Neidiger/Tucker/Bruner 25,000 * 25,000(12) 0 *
----------------------------------- ---------------- -------------- ----------------------- ------------------ --------------
But I guess I don't understand the $1.375 maximum price in light of the current price. Are these shares being sold because warrants are being exercised, or because of some other pre-existing financing deal?
CALCULATION OF REGISTRATION FEE
===================== =============== =========================== ====================== ===================
Title of Securities Amount Being Proposed Maximum Offering Proposed Maximum Amount of
To Be Registered Registered(1) Price Per Security(2) Aggregate Offering Registration Fee
Price
--------------------- --------------- --------------------------- ---------------------- -------------------
Common 2,561,409 $1.375 $3,521,937 $1,038.97
Stock, par value
$.10 per share
===================== =============== =========================== ====================== ===================
Total Registration $1,038.97
Fee
AFTER EDIT: I see these notes to the above, which help:
(1) Pursuant to Rule 415, the Registration Statement relates to an
indeterminate number of shares of Common Stock which have either
been issued or are issuable upon the exercise of options and
warrants.
(2) Pursuant to Rule 457, estimated solely for the purpose of
calculating the registration fee, based upon the last reported
sales price of the Registrant's Common Stock of the same class as
quoted by the National Association of Securities Dealers
Automated Quotation System on April 15, 1998.
and, finally, this:
Outstanding Options and Warrants.
As of the date of this Prospectus, the Company had granted options and
warrants to purchase an aggregate of 4,195,926 shares of Common Stock that had
not been exercised. Of the shares of Common [page break omitted] Stock subject to these unexercised options and warrants, 5,000 may be purchased
for less than $1.00; 3,446,926 may be purchased for between $1.00 and $1.99 per
share; 499,500 may be purchased for between $2.00 and $2.99 per share; 162,000
may be purchased for between $3.00 and $3.99 per share; 50,000 may be purchased
for between $4.00 and $4.99 per share; and 32,500 may be purchased for between
$5.00 to $5.99 per share. To the extent that the outstanding stock options and
warrants are exercised, dilution to the interests of the Company's stockholders
will occur. Moreover, the terms upon which the Company will be able to obtain
additional equity capital may be affected adversely, since the holders of the
outstanding options and warrants can be expected to exercise them at a time when
the Company would, in all likelihood, be able to obtain any needed capital on
terms more favorable to the Company than those provided in the outstanding
options and warrants.
So does it look like the company had the chance to satisfy the warrant/option holders by issuing new shares but chose not to? |
