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Non-Tech : InvestRight Club Challenge -- Ignore unavailable to you. Want to Upgrade?

To: Scott Andrew Smith who wrote (26)	2/20/1999 10:29:00 AM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 2662

No chance of RDIM doing that Scott. The company has just completed it's initial round of fund raising. This money should be used to start RDIM down the road to making it's business plan a reality as they close acquisitions and open up their e commerce demo site. RDIM will soon be looking to do a follow on SB2 offering of restricted stock. The company announced they were hoping to raise around $20 million this way during the last conference call back in late December. There won't be any floorless convertibles done on RDIM. I suppose warning lights on a company for a company that might have to use a floorless convertible would be when you have a company that has had a very difficult time raising funding for an extended period of time. RDIM is just getting started and hardly qualifies as a company that has sent up any warning signs. Regards, Jeff

To: Scott Andrew Smith who wrote (26)	2/20/1999 1:44:00 PM
From: tinsoldier	Respond to of 2662

Scott et al, re floorless convertibles. As those who have read the article now know, floorless convertibles give shorters wet dreams. If you have plenty of time, check out this work in progress. ragingbull.com My purpose here is to inform all investors who hitherto may not have known about these evil monsters and is not specifically directed at RDIM or any other stock mentioned on this new thread. Just be aware of the capital structure of the company you are investing in particulary when private placements are involved. SEC form S-3 is helpful in this regard but is public only after the placements have taken place. As far as warning signs go, any private placements not put out to the common shareholders for approval should be a concern. Indeed I would suggest whenever possible that common shareholders specifically resolve at annual meetings that the BOD be forbidden to issue floorless convertibles without first coming back to the commoners (as the article suggests). Indeed RDIM common shareholders may be in a very strong position to do just that. Once such resolutions are adopted, the potential for these monsters to rear their ugly head is removed. Here's the link again. Copy it to other boards and help educate all investors. techstocks.com