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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Scott Garee who wrote (9682)	12/17/1998 10:09:00 AM
From: Scott Garee	Respond to of 16960

Yahoo now shows the ETA for NVIDIA's IPO as "early January". Since they clearly won't beat the 31-DEC-98 deadline the three lenders will not end up with common stock discounted by 10%, but I'm unclear how the $7 shares of the private company would be valued following an IPO. I'm very interested to know how big a chunk of NVIDIA would be owned by DIMD, CREAF, and STBI following the IPO. This valuation would also be interesting to know whether someone is likely to buy them prior to 15-JAN, based on that deadline in the terms of the CS's. Michael, can you provide any insight into this? Mandatorily Convertible Notes Convertible subordinated non-interest bearing notes were issued to three major customers in July and August 1998 for a total of $11.0 million. The notes are subordinated to certain senior indebtedness. In the event that the Company issues and sells shares of its common stock in a firm commitment underwritten initial public offering pursuant to an effective registration statement yielding gross proceeds to the Company of at least $10.0 million prior to December 31, 1998, then upon the closing of such initial public offering the outstanding principal balance of the note automatically converts to common stock of the Company at a conversion price equal to 90% of the price at which the common stock is sold to the public. In the event that a qualifying initial public offering is not completed by December 31, 1998, then, on January 15, 1999, the outstanding principal balance of these notes automatically converts into common stock of the Company at a conversion price equal to $7.00 per share of common stock. In the event of a merger, consolidation, acquisition or similar corporate event prior to January 15, 1999 whereby greater than 50% of the voting securities of the Company becomes acquired by a third party, then the outstanding principal automatically converts into common stock of the Company at a conversion price equal to 90% of the price at which the common stock (on an as-converted basis) is acquired by such third party.