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

To: Roger A. Babb who wrote (116)	10/9/1998 11:21:00 PM
From: N. Dixon	Read Replies (2) \| Respond to of 1438

Roger, I thought we had clarified on the REFR thread that the recent equity financing gives REFR all the options including setting the floor price and not having to offer one single share under the Class A warrant. The only requirement that can be imposed according to the agreement is the Class B warrant which stipulates the sale of 65,500 to the fund at a premium of 120% or $8.25. Didn't Mr. Harary confirm this in your discussion? REFR's current status shows they have a lot of cash and three licensees coming to market with product which will provide revenues from royalty payments. ND

To: Roger A. Babb who wrote (116)	10/10/1998 4:16:00 AM
From: Dave K	Read Replies (1) \| Respond to of 1438

Death Spiral Part 2: Equity Credit Financing !. I was just getting a handle on converts. I need to do more work on these but a quick check didn't turn up anything worthwhile except the scenario you described... Message 5902077 This is definitely not an equity line of credit. I'm missing some basic key points in your scenario: I don't follow why these companies go through a third party (the fund) to sell shares at a discount. Why not go directly to market and raise 100% ? Is there a non-disclosure advantage ? What section are these deals filed under ? Maybe you can save me checking all the REFR filings. [I followed REFR a few years back. As I recall, the price could never sustain an up move on good news for some reason.} Thanks Dave

To: Roger A. Babb who wrote (116)	10/10/1998 4:14:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

Roger, I call those the "Leaky floorless Instruments", TTRIF is a prime example, those robbers have no shame, in their last annual report they took the ceiling off the number of shares authorized, they went from about 45 MM shares August 1997 to more then 185 Mm shares at last count. RNTK has a leaky floorless as well. HEC has a new version in which the floorless feature is delayed until later (like in 1999 or so). Zeev