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 : Aladdin Knowledge Systems (ALDN) -- Ignore unavailable to you. Want to Upgrade?

To: Harry J. who wrote (303)	3/18/1999 7:32:00 PM
From: jsabelko	Read Replies (2) \| Respond to of 351

Harry, i don't mean to question your data, but just want to be sure it is correct as I'm very interested in aldn's wavx connections. I looked back through some of Aldn's press releases and wavx's sec filing and I'm rather unclear concerning exactly how many shares aldn actually owns and how many it just has warrants for and then of course the exercise price. I believe the 14% you found includes warrants as several wavx sec documents indicate aldn owns and if you read the applicable notes has warrants for a combined total of roughly 4.5 million shares (wavx has roughly 27 million shares out). However, as far as I can tell one of the warrants is for 7% of total wavx class a shares (roughly 2 million shares), but the exercise price is just avg for last 15 days so NOT substantially below market. Aldn bought 500,000 shares in july 97 and then exercised a warrant but it is unclear exactly which one in july 98 (paid 2.5 million for 1 million shares or roughly 2.5 a share) this does not correspond to the warrant for 2.1 million shares at 1.70 exercise price (see sec blurb below) , but also it is not even close to the avg closing price of wavx of roughly 10 during july 98 so something is strange as it appears to be neither of the warrants issued in july 97. Below are a few snips from press releases and sec documents that may make my above rambling more coherent. 1) from wavx sec filing : In connection with a technology license agreement with Aladdin, the Company issued two warrants on July 18, 1997 to purchase the Company's Class A Common Stock. The first warrant is exerciseable in 100,000 share lots, and provides the holder with the right to acquire 2,185,437 shares of the Company's unregistered Class A Common Stock at an exercise price of $1.70 per share. The first warrant has a life of two years. The second warrant provides the holder with the right to acquire 7% of the Company's Class A Common Stock on a fully diluted basis for the average closing price for the 15 trading days prior to exercise. The warrant must be exercised in its entirety and expires at the end of three years. 2) From press releases july 97 and july 98: aldn bought 500,000 shares on july 97 for 900,000 and exercised a warrant for 1 million shares for $2.55million in july 98. In any case it seems clear aldn currently owns AT LEAST 1.5 million and ASSUMING for now the 1 million exercise in july 98 was the 1.70 warrant they can purchase another 1.1 million for roughly 2 million dollars for a total ownership of 2.5 million shares. The other 2 million (7% class a) in warrants appears to be roughly at market. I have emailed aldn IR to try to get this clarified so we can avoid words like at least and assuming and I welcome any comments if someone else has any information. Could a few other people also call/email so we are sure to get some answers. Thank you joby