Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: SnowShredder who wrote (65)	9/2/1998 9:23:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

Where: I had time only to look at GZTC, a sory story. In any event, the way to find out if a company has a floorless is to look over their SEC filing, particularly S-3 registration where they register new shares. The body of the registration usually shows conditions of conversion. Here is what I found in GZTC recent s-3: (refe. conversion of some preferred stock, I believe it is a credit line from their parent Genzyme, " at the lower of: (i) $14.55 and (ii) the average closing price of the Company's Common Stock as quoted by the Nasdaq National Market for any five trading days, selected by the holder, during the twenty trading days immediately preceding the date of conversion. As a result, the number of shares of Common Stock issuable upon conversion of the preferred stock may increase above, but will not decrease below, 1,374,569 shares. Lastly, an indeterminate amount of shares are registered for issuance and sale by the Company on a continuous basis at a maximum aggregate offering price of $12,000,000, of which, to date, 603,300 shares have been sold at an aggregate purchase price of $6,515,640." Zeev