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Biotech / Medical : GZTC -- Ignore unavailable to you. Want to Upgrade?

To: Andrew H who wrote (571)	10/22/1998 2:16:00 PM
From: HIA	Read Replies (1) \| Respond to of 752

They did not do a floorless convertible...there is a limit of 3.48 million shares to convert the preferred...and that would work out to a conversion price of 5.75...IF the preferred holders were to convert around December 21 (or later)...and if the stock price at that time was 5.75 (or higher)...then there would be no preferred to redeem for cash at April '01...so...it would advantageous for the stock to be at 5.75 after November... You might question the market timing of the preferred issue as large-caps were due for a pull-back...but at late March small-caps had already pulled-back...so the timing is understandable...(there was...since...a small-cap scare...)... But these things can go either way...there is no assurance to either side...C-Cube Micro...for instance...is buying its convertibles back for a capital gain!...(I was just noting that the Intel/Micron deal might be for up to a 6% stake of new shares...)...