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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (52977)	3/22/1999 10:45:00 PM
From: Merritt	Respond to of 132070

MB: Regarding the floorless convertible on ANCR: I don't know that it's all converted, but since the number of shares has doubled, according to Moy, it's likely they were. As I'm sure you know, a floorless convertible in itself doesn't mean the company doesn't have a future, but it does raise doubts about management, IMHO. This company reminds me, on the surface, of FIBR, which gradually sank from around 18 to 2 (if memory serves), where the convertible was apparently executed...the stock closed at 19 1/2 today...even with a management team that stretches credibility, IMHO. I don't know the situation of ANCR, haven't done any DD...probably won't, either.<g>

To: Knighty Tin who wrote (52977)	3/23/1999 3:44:00 AM
From: Kerry Lee	Respond to of 132070

RE: ANCR Floorless Convertibles, there were 2 rounds of Reg D financing in 1997/98 which raised approx $19 million in cash over 2 years..As of Dec 31/98, there was only $250,000 of Reg D left to convert according to the CFO and that was publicly disclosed in the Q4 conference call in February. From a practical standpoint, the Reg D sellers are history. Feel free to call up ANCR CFO Steve Snyder. Regarding cash, at the end of 1998, ANCR had $7.4 million in cash and were due to receive their 3rd installment payment of $3 million March 15/99 from INRANGE ( part of a $9 million licensing/royalty agreement signed in Sept/98 ). ANCR quarterly expenses ( G&A, S&M )run approx $1 million per month, so at worst case of zero revenues, the burn rate is $3 million/quarter. In other words, ANCR should report cash as of March 31/99 of at least $7.4 million.INRANGE also owns 750,000 warrants exercisable at $2.50 ( 250,000 warrants ), $5.00 ( 250,000 warrants ) and $10.00 ( 250,000 warrants )which potentially brings in another $4.4 million cash. In contrast, Ancor's main competitor, Brocade Communications just filed their S-1 on Friday ( March 19/99)to raise $43 million in an IPO to be underwritten by Morgan Stanley, Alex Brown and Dain Reuscher. Brocade had $10 million in cash as of Jan 31/99. Recent history suggests that successful IPO's can positively impact the valuations of peer group companies ( eg. ITVU ran up when BCST came public, FAXX was recently affected by EFAX IPO ).