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Technology Stocks : NETsilicon IPO (FIBR spin-off) -- Ignore unavailable to you. Want to Upgrade?

To: CH who wrote (2)	9/7/1998 9:52:00 PM
From: Brian	Respond to of 24

CH It doesn't look like the market believes that the IPO will go through. If the market remains like it has been the past two week's I don't see how they can complete the IPO. Although I think that the past two week's has been a market correction rather than the beginning of a full scale bull market. After all, if the IPO is completed the underwriter has agreed to purchase 1/3 of the quantity of Osicom shares in the NETsilicon company at a price of $5 (less commission) and osicom keeps 1/2 of the company. 2/3 of $5 is $3.33 just for the EN division of Osicom. Until Osicom is selling at that level or higher, the street doesn't believe that it will happen! Or they believe that Osicom is no longer solvent! The underwriter does have an option of canceling the rights offering "if the conditions precedent to the sale to the Underwriter set forth in the standby underwriting agreement are not satisfied", but we have not been told exactly what the standby underwriting agreement is. So as usual with Osicom, we just don't know right now!!! under the S1 form for Digital Products Inc. page 16 stated: freeedgar.com <<CANCELLATION OF RIGHTS OFFERING If the conditions precedent to the sale to the Underwriter set forth in the standby underwriting agreement are not satisfied, the Underwriter may elect, on or before the sixth business day after the expiration date of the rights (the 'Closing Date'), to cancel the rights offering and the Company will not have any obligations with respect to the rights. Under such circumstances, the exercise price, without interest, will be promptly returned. See 'Underwriting.' The Company has been advised by the NASD that it is likely that trades in the rights and the when-issued shares of Common Stock in the market would be cancelled if the rights offering is not consummated. 16>> Brian