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

To: Rocky Reid who wrote (6927)	8/4/1998 4:02:00 PM
From: Troy Shaw	Read Replies (1) \| Respond to of 7685

Rocky, <<Now that SYQT is by every definition, a penny stock, what happens with all of teh outstanding warrants? Can they still be converted, and at what price?>> Warrants can still be exercised. Syquest recently issued incentive stock at par value (which I believe is .01) to entice warrant holders to exercise their warrants, which allow the holder to buy stock at around $3 (I'm going from memory.) Syquest used something like 11M shares to entice some warrant exercises at a time when the stock was at about $1.5. So, if the current stock price is $1 and the warrants are for $3 how much stock are you going to have to give away for each warrant to make the transaction worthwhile for the warrant holder? At least 2 shares per warrant, and that just breaks the warrant holder even with 3 shares for $3. The warrant exerciser is probably going to want to get about a 15% gain, so Syquest is going to have to give out about 2.5 shares per warrant. Of course, being no financial genius I could be misreading the entire situation.