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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable. -- Ignore unavailable to you. Want to Upgrade?

To: Steven Liebler who wrote (1955)	5/1/1998 8:35:00 AM
From: James Fink	Respond to of 2063

After July 1, 1998, CSFB can convert its debt into CVUS stock at any price; there is no minimum price or floor to the conversion ratio. This means that CSFB could, theoretically, convert its $10 million debt into 100 million shares at ten cents each. All CSFB has to do is short CVUS continuously until the share price plummets to 10 cents, and then announce its intention to convert. In addition to shorting, CSFB can assure CVUS's financial demise by refusing to extend credit terms or otherwise help CVUS out of a tight spot down the road. If CVUS is forced into bankruptcy, the share price might very well go down to 10 cents. Once CSFB has converted its debt to shares, it can then reverse course and provide CVUS with the additional financing necessary to make the company a success. Of course, by then, CSFB will own 95 percent of CVUS and current CVUS shareholders will have been diluted out of existence.