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 : Coyote Network Systems (CYOE), Mixing It Up, IP and ATM -- Ignore unavailable to you. Want to Upgrade?

To: dumbmoney who wrote (216)	3/15/1999 3:37:00 PM
From: Q.	Respond to of 360

yes, thanks, you are right, the discounted convertible is described in the November 10Q, and I hadn't noticed it there before. edgar-online.com I noticed that some penalties that can kick in: * a 2% penalty each month that they don't have the registration effective by a certain "Effectiveness Date" (which I can't find specified anywhere inthe 10 Q). This penalty can be paid by the co. in cash or it can be applied to the convertible by reducing the conversion price. Maybe this is what the latest 10Q referred to when the co. said it owed the convertible holders $280 k on Feb. 1. * if the registration isn't deemed effective within 180 days after the convertible deal closed on Aug. 31, 1998, which should happen around March 27, then the convertible holders can demand a redemption of their preferred shares back into cash. The latter is something that poses a big threat to the co.: if JNC, who holds the convertibles, decides things look too unpromising they can try to get out this way. There's no way the co. could come up with $7.5 M cash to pay this redemption without killing themselves.