Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Read-Rite -- Ignore unavailable to you. Want to Upgrade?

To: Mark Oliver who wrote (4447)	12/20/1998 9:53:00 PM
From: CPAMarty	Respond to of 5058

I do not think that it was RDRT that took Syquest stock in exchange for components. I did down load a number of Syquest SEC filings, if you want to email them to you, sent me a private message with the email addresse. the following is from syquest SEC filing; Moreover, the Company purchases all of its sole and limited source components and equipment pursuant to purchase orders placed from time to time and has no guaranteed supply arrangements. During the 1996 and 1997 fiscal years, the Company experienced disruption in its supply of certain components for a number of reasons, including industry-wide shortages and the shortage of cash to pay suppliers, which adversely affected the Company's ability to produce EZ Flyer 230 and SyJet products. The Company may experience difficulty in obtaining a sufficient supply of many key components from time to time due to supplier shortages, the shortage of cash to pay suppliers or other reasons. On July 15, 1996, the Company issued a debenture to one of its suppliers pursuant to which up to 400,000 shares of Common Stock could be issued to the supplier at a conversion price of $6.9375 per share. Thereafter, the Company conducted similar negotiations with other suppliers to extend the payment dates on amounts owed and converted a total of approximately $43.1 million of accounts payable and other obligations into notes payable to reflect extended repayment terms. In September and October 1996, and February, March, April and December 1997, the Company exchanged some of the notes payable for an aggregate of 8,188,571 shares of Common Stock. As a result of the Company's completion of recent financing transactions and other efforts by management to improve SyQuest's financial condition, most of the Company's suppliers have transitioned from doing business with the Company on a C.O.D. basis and are selling to the Company under more standard commercial terms. If the Company were to experience more severe cash flow problems in the future, many of its key suppliers might again require C.O.D. payments which would place a significant demand on the Company's available cash resources and limit the Company's financial flexibility and ability to meet market demand for its products.