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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?


To: george eberting who wrote (12404)12/8/1998 11:10:00 AM
From: WISDOM MILES  Read Replies (3) | Respond to of 19331
 
G.E,

We know who you are.

Take care

Stronger than ever. GO DCTC!



To: george eberting who wrote (12404)12/8/1998 11:17:00 AM
From: David Bartkowski  Read Replies (1) | Respond to of 19331
 
"In the event the call option is not exercised, there will be an adjustment to the number of shares owned by IXC on June 1, 1999 if the 15-day volume-weighted average price for the shares is outside of the range of $4.20 to $5.88. After the adjustment, if any, IXC will own shares of DCI with a minimum value of approximately $18 million (if the price is below the range) and a maximum value of $22 million (if the price is above the range)."

George, I read this to mean if the price is lower they get less!!!!

What are you reading?
DAVE



To: george eberting who wrote (12404)12/8/1998 11:18:00 AM
From: grw5  Respond to of 19331
 
You might have a point. I'm not that astute in this area, but couldn't a similar argument be made in the other direction which would make it to IXC's benefit to make the market as tight as possible.

Might there be more profit in it for IXC if they chose to help drive the price up? I leave it for those smarter than I to talk it out.

Best of luck,
George




To: george eberting who wrote (12404)12/8/1998 11:22:00 AM
From: Grantcw  Read Replies (1) | Respond to of 19331
 
George,

I agree with you that the deal structured looks a bit like a floorless convertible. The minimum value of the stock given to IXC is 18 million. If DCTC's stock price is 2 at the time, I would assume that they would get 9 million shares. That looks ugly by itself which is why the call option to repurchase the shares is in place. I think this protects us from any attempt to drive the price down.

Grant