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Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel -- Ignore unavailable to you. Want to Upgrade?

To: ChrisJP who wrote (7270)	8/14/1998 3:19:00 PM
From: eric deaver	Read Replies (2) \| Respond to of 14347

Chris: I agree. I have seen draft upon draft of Superfund agreements with major oil. Neither side signs until they both agree then boom it goes right through. Now this is going up pretty high in TX for signature authority but it still should be VERY close if the report of RNTK signing is true. Eric

To: ChrisJP who wrote (7270)	8/15/1998 10:32:00 AM
From: Zeev Hed	Read Replies (3) \| Respond to of 14347

Chris, here is what I found in the most recent 10QSB of RNTK: 3. PREFERRED STOCK During the period the Company issued 200,000 shares of Series A Preferred Stock at $10.00 per share together with warrants to purchase 200,000 shares of Series B Preferred stock and, at the option of the Company, up to an additional 600,000 shares of Series B Preferred Stock at $10.00 per share. Net proceeds from issuance of the Series A Preferred Stock was $1,800,000. The Series A Preferred Stock pays a dividend of 9% per year and is convertible over 18 months into common stock at the lesser of the average closing bid price of the common stock for the five trading days preceding the sale of the preferred shares, or at 82.5% of the average closing bid for the five trading days preceding the conversion of the Series A Preferred Stock into common stock. During the period the Company recorded a deemed dividend of $581,098 with respect to the discount and recorded accrued dividends of $72,074 with respect to the 9% dividend on the Series A Preferred Shares. During June 1998, 30,000 shares of Series A preferred stock including accrued dividends were converted into 309,789 shares of common stock. The warrants provide for the purchasers, during the 18 months after purchase of the Series A Preferred Stock, to purchase and the Company to sell, 200,000 shares of the Series B Preferred Stock and provide the Company during the same period the option to sell to the purchasers an additional 600,000 shares of the Series B Preferred Stock at $10.00 per share. The Company has no obligation to sell any of the 600,000 shares of the Series B Preferred Stock to the purchasers. The Company does not have to sell any of the 800,000 shares of the Series B Preferred Stock to the purchasers if certain conditions occur, primarily related to volume and the price of the common stock in the market. The Company has no obligation to sell any of the 800,000 shares of the Series B Preferred Stock if the average daily share price for the common stock for the 10 trading days prior to the sale is less than $1.00 per share. My note But the company can sell these preferred, and if it is short of cash, it surely will The Series B Preferred Stock pays a dividend of 9% per year and is convertible into common stock until December 31, 1999 at 82.5% of the average closing bid for the five trading days preceding the date of conversion. On July 20, 1998 the Company issued 100,000 Series B Preferred stock for $1,000,000 in cash before offering costs of $100,000. The Series B Preferred Stock is convertible into common stock at a discount. The Company recorded a deemed dividend of $24,060 with respect to the discount." So, as to your question, do you have a floorless, the answer is the first $2 MM is definitely floorless and half of it is already converted (note that at this time last year you had about 15 MM shares, now you already have 35 MM shares). The additional $6 MM is exactly the same type of instrument TTRIF had, a "leaking floorless" which will be in place as long as the company has negative cash flow (I believe the burn rate is clase to $800 K per quarter if we take the last quarter loss as an indication) or for the next 18 months. I have no idea how much cash a possible Texaco deal will bring, but this Texaco deal has been in the making for more than a year, and the longer it is in the making the lower are the chances that it will come through. I am staying out of it until it is clear that the floorless is no longer there, this stock could very well end up like TTRIF in the deep sub 1 territory. Zeev