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

To: Troy Shaw who wrote (6928)	8/4/1998 5:20:00 PM
From: Troy Shaw	Read Replies (2) \| Respond to of 7685

Dale, Rocky, Assuming none of the 44.7M shares registered in the latest S-3/A have converted yet (which could be determined by contacting the company to find out if the S-3/A has been deemed effective yet) with the current market price of 15/16 you get 80M shares needing to convert. So, if we calculate the total value-of-conversion by, shares * conversion-price = total-value-of-conversion we get: 44,741,512 sh * $1.4375/sh = $64,315,924 (#'s from latest S-3/A) Calculating for todays conversion price with a 15% discount, with todays-conversion-price = share-price * 85%, we get: $.797/sh = $(15/16)/sh * 85% To determine the number of shares needed for conversion using total-conversion-price / todays-conversion-price = shares-needed-for-conversion, we get: $64,315,924 / $.797/sh = 80,717,776sh Since Syquest had 65M shares available for raising money above the 45M slated for conversion according to the latest S-3/A, minus the 11.9M new shares SyQuest used to entice warrant conversions, minus the number of shares required for conversion at todays price above the 44M, you get: 65M - 11.9M - (80.7M - 45M) = 17.4M shares left to raise money. Assuming a 15% discount for a $3 warrant, then approx 2.72 ($3 * .85 = 2.55 and 2.55 / $(15/16) = 2.72) shares per warrant are necessary to entice warrant holders to exercise their warrants, that means that 6.4M (17.4M / 2.72) warrants can be enticed to exercise. At $3 per warrant that totals $19.2M that SyQuest can raise within their current 240M share cap. Of course, there could be some room for play here, because SyQuest will not be able to entice all of the 30M warrants that they originally issued to exercise within the current share cap of 240M. That could leave some of those 30M shares allocated for Warrant conversion available for enticing other warrant conversions. Or, I could be misreading the entire situation.