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 : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Johnson who wrote (8975)	3/6/1999 2:05:00 PM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

<<Valence has plenty of resources to get this baby off the ground.>> They do? They began the quarter with negative working capital. They have announced no new financing since the beginning of the quarter. Their burn rate has increased substantially. Some of this increase is attributed to the loss of support from Delphi. They said themselves they need more money by March 31. Their last financing was the sale of convertible preferred shares with a floorless conversion provision, hardly the choice of a company with "plenty of resources." They have not announced plans for a secondary offering, so I suspect we are looking at another private placement. The question is what will be the terms of the next financing? If the optimism on this thread is justified by the facts, VLNC should be able to arrange financing on favorable terms. If we see more floorless junk, I would suspect that Zeev's concerns about the technicals not in synch with the fundamentals will ring true. I'm glad you are so certain they have plenty of resources to get this baby off the ground, Mark. You must have access to some sort of information the rest of us don't have.