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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (9744)	3/23/1999 1:23:00 PM
From: kolo55	Read Replies (1) \| Respond to of 27311

That's the way I read it. I don't have a lot of time, but my reading of the cash from the preferred and cash raised when they exercise the warrants is the same as you. They raised $15M (minus $800K in fees to Gemini Capital, not the $750K sometimes quoted on this thread, for a next of $14.2M in new cash. Valence gets another $5.4M from CC when they exercise the warrants. Regarding running out of cash by the end of March. In the DecQ 10Q, they said they had enough cash to operate through March 99. But interestngly they said in the SepQ 10Q that they had enough cash on hand at that time, to operate through March 99. This was before the $7M+ was raised in the second CC tranche in December. Add this to the statements made by Lev at the AM, and I don't think they will be forced into raising cash as soon as some on the thread insinuate. I know they have negative working capital. But given that they have the Berg LOC of $7.5M to pull on in a tough situation, I wouldn't expect another round of financing until late summer (unless a stock price pop makes financing earlier more attractive). Well, this is just my opinion, and everyone should decide this for themselves. I just wanted to point out that claims of another financing round being needed in the next few weeks, isn't entirely consistent with some interpretations of the SEC filings, and management's statements. Especially when the speculation turns into statements that another floorless round is on the way in the next few weeks. I wasn't surprised too much when the market decided to mark Valence stock down to below the warrant exercise price; And even this morning wasn't too surprised to see the price spike down to the conversion price of the preferred. Many traders just see a prospectus to sell shares, and pull out until the price drops to the buyer's purchase price. They may not be all that familiar with the history of the company, and didn't see the virtually identical prospectus filed for the first tranche on December 10. But the drop below 6.03 on the prospectus news was surprising . I bought at 6.00, and expect that this is the temporary floor established by the preferred conversion. This raises my existing share basis a bit, but I'm still solidly in the black. I couldn't pass up the opportunity to move on the irrational behavior of the market today. Given the temporary downside is 6.00, I expect the stock to bounce back to the mid-6s. We may be locked in this range until news of shipments leak out. Paul