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Technology Stocks : Number Nine Visual Technology -- Ignore unavailable to you. Want to Upgrade?

To: JR2 who wrote (984)	5/9/1998 4:45:00 PM
From: AreWeThereYet	Read Replies (1) \| Respond to of 1183

From earning release: >> The companies' financial arrangement is structured as a loan pursuant to which the company may borrow up to $9 million. The loan is convertible into preferred stock at a conversion price of $2.75 per share. The loan, if not converted, is payable on demand 180 days after September 30, 1998. The loan is subordinate to the Company's existing secured line of credit and is secured by essentially all of the company's assets. If Silicon Graphics converts the loan and maintains an equity interest equal to or greater than 5% of the issued and outstanding Common Stock on an as-converted basis, it is entitled to elect one (1) director as a class. Silicon Graphics was also issued a 3-year Warrant to purchase up to 3% of the outstanding Common Stock at the time of exercise, exercisable at a price of $2.75, only if Number Nine repays the outstanding principal and interest under Loan. In conjunction with this transaction, shareholder approval was required pursuant to NASD Marketplace Rule 4460i; however, the Company sought and obtained from Nasdaq a ''financial viability'' exception from the shareholder approval, because a delay in securing shareholder approval would seriously jeopardize the financial viability of the Company. The Audit Committee of Number Nine's Board of Directors has expressly approved Number Nine's reliance upon the ''financial viability'' exception, as required under the NASD By-Laws. << aC

To: JR2 who wrote (984)	5/9/1998 11:37:00 PM
From: JR2	Read Replies (1) \| Respond to of 1183

What scenario down the road BEST enhances shareholder value? Specifically, A. Pay off loan; B. Have major increase in revs. from Silver Hammer and Strawberry Fields...therefore ? Do not pay off loan? C. Same as B but do pay off loan. (A) presumes not enough success to be able to pay off loan. Where does Intellectual Property figure in? What is SGI REQUIRED to do? What is BEST scenario for SGI? Please Quantify dilution at 2.75 level vs shares added to 9million currently existing. In other words ; How many more shares will be floating? I hope Sharon B. can help analyze this along with you Ac.....I'm way too stupid to speculate on this one. The other JR is still mad that the company changed the conference call and didn't tell anyone. 5:30, then 8:30 then 8:00....oh and the replay was not "for the entire weekend"....more cost cutting, right? Finally, D. suicide as advertised on last post ! Pardon the fatalism...Looking forward to your collective help. CHOW This post was suppose to be sent to Ac, and Sharon B. not my moronic self !