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Gold/Mining/Energy : Harken Energy Corporation (HEC) -- Ignore unavailable to you. Want to Upgrade?

To: SDR-SI who wrote (3199)	7/12/1998 3:02:00 PM
From: Zeev Hed	Respond to of 5504

Steven, I agree with you completely, convertible debt is an excellent avenue. I am in the process of raising money for a new company myself, and one of the "larger investors" is insisting on a "cookie", finally, I put on the table an inducement which is in essence a convertible at a discount to his first equity buy, but at a fixed discount (we are not public, so the issue of floorlessness is irrelevant, luckily). The warning signs appeared with the $15 MM preferred and the $35 MM "participation". The $85 MM, I do not know yet how to handle, since the floorlessness is so far in the future that a lot of good (and bad) things can happen. Zeev