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Non-Tech : J.B. Oxford -- Ignore unavailable to you. Want to Upgrade?

To: Michael Peterson who wrote (456)	2/3/1999 1:51:00 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 2220

JBOH coverts at 70 cents/share, adds 6,495,889 shares! :"NOTE 3. CONVERTIBLE NOTES In June 1998, the Company completed the sale of newly issued 9% Secured Convertible Notes in the principal amount of $2.0 million due December 31, 1999. The notes are convertible into the Company's $0.01 par value common stock (the "Common Stock")at a rate of $0.70 per share. The notes will be converted into a new issue of voting preferred stock of the Company if such new issue is approved by the Company's shareholders. The new preferred stock will be convertible into Common Stock on the same terms as newly issued 9% Secured Convertible Notes. In conjunction with the above transaction, the purchasers of the newly issued 9% Secured Convertible Notes and another investor also acquired approximately $3.9 million in outstanding principal amount of the Company's 9% Senior Secured Convertible Notes. The Company agreed to reduce the conversion ratio from $1.00 to $0.70 per share of the Company's Common Stock for the entire $4,421,311 of outstanding 9% Senior Secured Convertible Notes. The maturity date of the notes was extended to December 31, 1999, and they are immediately convertible into common shares. The Company incurred a non-cash interest charge of $560,000 in the second quarter of 1998 as a result of the discount conversion feature on the debt instruments discussed above. The discount is based on the difference of the conversion ratio to the fair value of the underlying Common Stock after applying certain discounts that management believes are appropriate under the circumstances. "