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Technology Stocks : XYBR - Xybernaut -- Ignore unavailable to you. Want to Upgrade?

To: LT who wrote (2164)	3/6/1999 8:34:00 PM
From: Bill Fischofer	Respond to of 6847

Re: Warrant question The previously posted information is almost correct, however the way XYBRW's anti-dilution provision is currently structured, you tender Xybernaut 1 XYBRW plus $9 cash and in return receive 1.19 shares of XYBR common. This means the strike price is effectively $7.55 however, you can't convert less than a whole number of warrants so you still need the $9 cash per warrant. Converting the warrants to common is a tax-free process provided you have the $9 per warrant cash. If you do not have the cash you may need to sell some of your XYBRW to convert the rest. The sale of those warrants is a taxable event, however. Obviously conversion questions only apply if the warrants are "in the money". If not, then they expire worthless just like a call option that's out of the money at expiration.