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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: Hugh M. who wrote (4884)	8/5/1998 2:35:00 AM
From: Darg Sphincter	Read Replies (1) \| Respond to of 25548

Forgive me for butting in but I see it as follows : The pref. shares are what we in Europe know as warrants. They cost $ 1 each and each warrant gives the holder to convert to ordinary shares on the dates shown at a ratio of 4 to 1. i.e. they are a warrant to purchase MDIN ordinary at 25c each. The upside for the holders as opposed to ordinary shares : Preferred stocks count higher as security as oppossed to common stock. I am sure this must have balance sheet implications for all involved (but what ?) .There is a possibility of a yield (?). Downside for holders : No possibility of sale before due dates UNLESS the SHORT common stock ahead of the dates and then CONVERT to cover obligations. No voting rights. In my eyes such a deal would not normally make sense unless the new holders were actually PAYING for the preferred shares. Here they are only EXCHANGING ordinary for prefered. As we know, though, the holders and the issuers are basically the same people, so the whole thing just gives the impression of taking shares away from the market (in an effort to bump up stock price ?) without in essence changing a thing. Always sceptical but still LONG of MDIN ! Darg