To: M.R. Davis who wrote (3247 ) 1/1/1999 8:26:00 PM From: Arcane Lore Read Replies (3) | Respond to
Firstly I think you'll find that just over 2 million shares are freed up in January. Hardly a massive dilution even if they did all enter the market at once. A further 2.4 million (approx.) are locked in for another year. Each Warrant entitles the holder to purchase one share of Common Stock at a price of $6.25 per share during the five-year period commencing on January 15, 1998. The Warrants are redeemable by the Company for $.05 per Warrant on not less than 30 nor more than 60 days written notice if the closing price for the Common Stock for seven trading days during a 10 consecutive trading day period ending not more than 15 days prior to the date that the notice of redemption is mailed equals or exceeds $10.00 per share, subject to adjustment under certain circumstances and provided there is then a current effective registration statement under the Securities Act of 1933, as amended, with respect to the issuance and sale of Common Stock upon the exercise of the Warrants. Any redemption of the Warrants during the one-year period commencing on January 13, 1998 will require the written consent of First London Securities Corporation. sec.gov As of March 25, 1998, the Company had outstanding and entitled to vote 7,508,427 shares of Common Stock, par value $.01 per share ("Common Stock"), and 3,380,000 Redeemable Common Stock Purchase Warrants ("Warrants"). In addition, the representative of the underwriters of the Company's initial public offering held warrants to purchase 135,000 shares of Common Stock and 270,000 Warrants, and the Company had issued a warrant to purchase 100,000 shares exercisable at $6.00 per share and an aggregate of 687,500 options, exercisable at various prices, to its officers and directors. (source: 1998 10-K)
