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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (517)	3/31/1999 7:52:00 AM
From: Zeev Hed	Respond to of 10293

I have been very clear about VLNC's preferred, they have a non fixed conversion rate, the future conversion does not have a definite floor, only a ceiling ($6.03/share), thus by definition these are floorless. The fact that the floorless feature is delayed to a future date is irrelevant. Furthermore, the fact that the terms of conversion can be changed if subsequent financing (imminent) is carried out at more favorable terms than the two preferred, is a "clear and present danger". The only salvation is an extreme strong indication that customers are lined up to order large quantities of their products. Large companies do not like uncertainties and part of the credit check the purchasing department of any potential OEM will do, will reveal VLNC's precarious financial condition. They are in a "chicken/egg" syndrome. OEM may not want to commit a new product with their battery designed in for fear that financially, VLNC will not be able to deliver. Te chances of missing the second half wave of portable PC buying is getting great and that means that VLNC may need to come up with another $25 MM (up to three q's of burn rate) of financing. There is always an outside chance of a miracle and a big OEM order, but frankly, it is my opinion that a massive order might be the death knell in this story, VLNC could choke on such an order if not managed with extreme precision and care. More things can go wrong than can go right, IMHO, and Murphy will have his pound of flesh. Zeev