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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: drakes353 who wrote (1110)	6/2/1998 3:16:00 PM
From: Carl Yee	Respond to of 2506

Yes, it was $5 mill from an "investor", with a promise of maybe another $5 MM. Have to reread it to see if it is a discounted convert deal. Went ahead with a small short to see what happens.

To: drakes353 who wrote (1110)	6/2/1998 3:31:00 PM
From: Carl Yee	Read Replies (1) \| Respond to of 2506

Here are the relevent sections of the PR release: << Provident American to Receive $5 Million Investment in E-Commerce Subsidiary, Insurion NORRISTOWN, Pa.--(BUSINESS WIRE)--June 2, 1998--Provident American Corp.(NASDAQ:PAMCE - news) today announced that an investor has invested $5 million in its wholly owned E-Commerce subsidiary, Insurion Inc. In addition, the investor has committed to invest another $5 million before Sept. 30, 1998. The investment is in the form of a convertible note which upon conversion will give the investor a 17 1/2 percent aggregate interest in Insurion Inc. The note will bear interest at the rate of 5 1/2 percent and mature May 29, 2003. Insurion Inc. will have the right to pay interest on the note in either cash or stock of Insurion Inc. >> Can't tell from the release if there is any discounting in the convert clauses. Carl