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Technology Stocks : Orckit (ORCT) -- Ignore unavailable to you. Want to Upgrade?

To: srvhap who wrote (1185)	5/19/1998 10:23:00 PM
From: savolainen	Read Replies (1) \| Respond to of 1998

[follow-on offering] hi tom, well so far, the market seems to feel that the follow-on is appropriate... had expected more of a "penalty" today... >> I think that the following is PART of Orckits plan to gear up for it and other things to come.<< so what are your speculations on the rest of the plan? :) from today's globes: "Orckit Launches Second Issue, Worth $60 Mln By Ami Ginsburg Orckit yesterday submitted to the US Securities and Exchange Commission an application to make a second share issue, consisting of three million shares. At yesterday's share price, the financial value of the issue would be $60.7 million. The issue will include an offer for sale of one million shares by the company's existing shareholders, and an issue of two million new shares. The offer for sale will therefore be worth $20 million, and the company itself will raise $40 million. The lead underwriter for Orckit's second issue will be Alex. Brown, which fulfilled this function in Orckit's first issue in September 1996. Sub-underwriters will include Oppenheimer, Montgomery, and Salomon Smith Barney. The reason for making the issue just now is Orckit's winning of a major contract to supply ADSL fast modems to GTE, the second largest telephone company in the US, with 25 million subscribers. Orckit sought to make clear that since winning the contract, demand for its telecommunications equipment had grown, and the company has already started supplying the fast modems to GTE. The GTE tender, which Orckit won in conjunction with Fujitsu, will bring its equipment sales of $70-80 million over the next few years. Orckit's aim in raising capital is to have suitable cash reserves in anticipation of significantly increased demand expected to arise at the end of the year. Orckit looks forward to the decisions in other tenders in which it has bid before the year end. The company hopes that increasing the quantity of floating shares will raise trading volume of in them, and encourage major US investing bodies to buy its shares. The issue will also be an opportunity for another road show in the US, which will certainly also affect trading in the company's shares. ..." globes.co.il