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.

Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: surelock who wrote (266)	2/19/1999 8:48:00 AM
From: Fred Puppet	Read Replies (1) \| Respond to of 1438

ICCSA didn't want to do a floorless - nobody does. They kept stalling NASD about the listing requirements violation while they looked for ordinary equity funding or a merger, but they got no takers. During that time, I was watching but not shorting. It was only last week that they filed regarding the floorless. It's not approved yet, but as I indicated the votes are there to approve it. If it doesn't get approved, then ICCSA gets delisted. Either way, this stock will go fairly close to zero. By they way, the company used to have 5 times as many shares, but they were in violation of another NASD listing requirement : a $1 minimum bid. So, they did a 1 for 5 reverse split to meet that requirement, which is how the number of shares got to be so small.

To: surelock who wrote (266)	2/19/1999 9:33:00 AM
From: Fred Puppet	Respond to of 1438

ICCSA update - thanks to John G. Generally, a preferred share is like debt, since it accrues interest and comes due at some specific date. Convertible preferred is generally like debt, but the preferred shareholder has the option of taking common shares instead of cash repayment. In the case the the ICCSA floorless, the preferred shareholders do not have the option of being repaid in cash, so this is not debt. Thus, conversion is not required to boost the net tangible assets. As soon as the deal is closed ICCSA will meet the NASD listing maintenance requirements.