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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis V. who wrote (4341)	10/4/1998 5:13:00 PM
From: kolo55	Read Replies (1) \| Respond to of 27311

This is nonsense created by Yahoo thread. The only time the stock has to be above 3 is in the 10 trading days prior to when the next tranche of the financing occurs. One of the conditions for the next tranche of financing (the Second Closing) is (from the 8K statement with the SEC): The Second Closing may be consummated (i) no earlier than the date the Company has publicly announced that a material OEM or battery repackager ("POTENTIAL CUSTOMER") has confirmed in writing to the Company that any of the Company's production batteries ("BATTERIES") has been tested for both performance and safety and that such Batteries meet all of such Potential Customer's safety and performance specifications; Also the Second Closing can occur no later than January 31, 1999. The information on the stock price required to be 3, is in Section 7.2 of the 8K, and it says: 7.2 CONDITIONS TO THE SECOND CLOSING. The obligation of Purchaser hereunder to purchase the Convertible Securities and Warrants to be purchased by it on the date of the Second Closing is subject to the satisfaction of each of the following conditions (including conditions to be performed at the Second Closing): (xi) The Closing Bid Price of the Common Stock in each of the ten (10) trading days immediately prior to the date of the Second Closing shall have been equal to or greater than $3.00. In summary, the insider trading reported so far has been more than ten trading days past, and since there is no public announcement yet of OEM acceptance, then the Second Closing has not happened yet. Hence, the insider buying isn't intended to support the price to allow the Second Closing. If we see a public announcement of OEM acceptance, then worry about the 3 stock price level support issue. Of course, if we get a public announcement of that sort, I don't expect the price to be anywhere near 3. Paul