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Microcap & Penny Stocks : Cade Industries -- Ignore unavailable to you. Want to Upgrade?

To: Bald Eagle who wrote (3098)	8/7/1998 3:36:00 PM
From: Upstock	Read Replies (2) \| Respond to of 3563

I will try to explain the Plan the way I understand it. Assumptions: 1. You currently own 1,000 shares(as of 8/7/98) 2. The takeover offer is 6.00 Each share of CADE you currently own has a Right to purchase one more share at exercise price of 15.00, which would cost a total of $15,000( 1,000 shares * 15.00). "If Rights become exercisable, holders of each Right, other than the acquiring or adverse person, will have the right, upon payment of the exercise price, to purchase the number of shares of Cade common stock which, at that time, have a market value of two times the exercise price of a Right. If the Rights become exercisable, the Cade Board of Directors may also exchange Rights, other than those held by the acquiring person or adverse person, in whole or in part, at an exchange ratio of one share of Cade common stock per Right." So, upon payment of the exercise price ($15,000), you would get the number of CADE shares with the market value twice the value of the exercise price which equals $30,000($15,000 * 2).If CADE is trading at the takeover price of 6.00 than you would receive 5,000 shares( $30,000/6.00). If CADE is trading at 5.00 than you would get 6,000 shares( $30,000/5.00). Of course, I could be all wrong about my understanding of the Plan. AL