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Technology Stocks : XYBR - Xybernaut -- Ignore unavailable to you. Want to Upgrade?

To: xclently who wrote (817)	5/21/1998 5:52:00 PM
From: LT	Read Replies (1) \| Respond to of 6847

What you have reproduced here is pretty routine, in respect to the warrants anyway. A share of common stock is reserved for each warrant issued and that's standard. If not where would they get the shares on conversion? Buy them at market? Not!!! A limited number of shares are available for conversion though. How much that might dilute the existing shares is something you can't really answer till we get there. LT

To: xclently who wrote (817)	5/21/1998 11:03:00 PM
From: Jay Hardy	Read Replies (2) \| Respond to of 6847

Peter to answer your questions: *****End of filing::: Questions: (If I ask questions, you can accuse me of thinking "I know it all") **1) How do the Put options work (Any lawyers or mathematicians here...I know they work for INTC and MSFT, but how do they work for a volatile stock under $10) A)The PUTs let the company get to the $10 million in "standby financing" that was the bi-headline in the May 18 press release. They simply average the previous three days of the stock price and do the standard discount and say to the lenders, here are X shares of Xybernaut now give me Y dollars. Note that 1 million shares would be alot cheaper with the stock at $6-$10 than when it was at $1.5. SInce the lenders allowed Xybernaut to have the equity financing tied to the stock price at the time when Xybernaut wants it is good for the company and shows that they aren't in dire straits. (p.s. i see someone wrote about that the company has the money already- that's not true. They have it as a line of financing to be gotten when they need it- and hopefully only as sales and distributers line up which will make the stock go higher and thus fewer shares to be given to the private buyers. ***2) any idea what the cost to the "private" buyers are as opposed to current market. A) The cost to the private buyers is the discount to the stock of the closing average of the previous 3 days. The discount is because the private buyers are here to lend money not invest capital (thus risk losing anything or everything). ****** 3)Are you aware that "what you don't know can hurt you? A) Is this sarcastic or what? Of course I'm aware of the cost of being unaware.