To: Greg Butcher who wrote (6654 ) 6/11/1998 5:14:00 PM From: FuzzFace Read Replies (1) | Respond to of 7685
This is lifted straight from the S3. Capitalization it theirs. No matter how you slice it, it is a major vote of no confidence in SYQT by its major shareholders. What do they know that you should know? I suggest every SYQT shareholder read the entire S3. =========================================================================== PROSPECTUS SYQUEST TECHNOLOGY, INC. 44,741,512 Shares Common Stock (Par Value $0.0001 Per Share) All of the shares of Common Stock, par value $0.0001 per share ("Common Stock") of SyQuest Technology, Inc., a Delaware corporation ("SyQuest" or the "Company"), offered hereby are being offered for resale by certain stockholders of the Company (the "Selling Stockholders") as described more fully herein. The Company will not receive any of the proceeds from the sale of the Common Stock by the Selling Stockholders. See "Use of Proceeds." The Common Stock is quoted on the Nasdaq National Market under the symbol "SYQT." The last reported sales price of the Company's Common Stock on the Nasdaq National Market on June 5, 1998, was $1.484 per share. The shares of Common Stock offered hereby by the Selling Stockholders consist of (i) in accordance with Rule 416 of the Securities Act of 1933, as amended (the "Securities Act"), a presently indeterminable number of shares of Common Stock issuable on conversion or otherwise in respect of 30,617 shares of the Company's 5% Cumulative Convertible Preferred Stock, Series 7, par value $0.0001 (the "Series 7 Preferred Stock"), (ii) up to 221,880 shares of Common Stock issued in exchange for debts owed to certain of the Company's creditors and (iii) up to 13,572,541 shares of Common Stock issuable on exercise of certain outstanding stock purchase warrants (the "Stock Purchase Warrants"). The number of shares of Common Stock estimated to be issuable and available for resale on the conversion of the Series 7 Preferred Stock is based on a conversion price of $1.484, which price is the closing sale price of the Common Stock on June 5, 1998. The number of shares available for resale is subject to adjustment and could be materially less or more than such estimate depending on factors that cannot be predicted by SyQuest at this time, including, among others, the future market price of the Common Stock. This presentation is not intended, and should in no way be construed, as a prediction of the future market price of the Common Stock. THE SECURITIES BEING OFFERED BY THIS PROSPECTUS REPRESENT APPROXIMATELY 43.2% OF THE ISSUED AND OUTSTANDING COMMON STOCK OF THE COMPANY. See "Risk Factors --Convertible Securities, Options and Warrants; Dilution" and "Selling Stockholders."