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Technology Stocks : VitalStream Holdings Inc. (VSTH) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (158)	3/9/1999 1:36:00 PM
From: Paul Lee	Respond to of 447

Doesn't sound like i can disagree with any of your statements

To: Thomas M. who wrote (158)	3/11/1999 5:29:00 PM
From: Dr. John M. de Castro	Read Replies (1) \| Respond to of 447

There will be a dilution due to the warrants. The kicker to the deal is the repricing of the warrants to .50. These are probably insurance against a short squeeze. After redemption the former preferred shareholders who have short positions will need to cover. These warrants will ensure that they can do it at .50 if not below. > If the Series A Preferred Stock is purchased under the terms of the agreements, the Company has agreed to reprice Warrants to acquire 100 shares of Common Stock for each share of Series A Preferred Stock (an aggregate of approximately 293,875 Warrants) at $0.50 per share and to cancel a like number of Warrants. > So, there could be some dilution, 293,875 shares. But, these would also yield $146,937.50 for the company. I hope I've read the agreement correctly. Heaven knows I'm no expert on these legal documents. So someone please correct me if I'm wrong. John de C