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Microcap & Penny Stocks : Benz Energy (BZG.V) -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (114)	4/1/1999 10:09:00 AM
From: Casey	Read Replies (1) \| Respond to of 272

Ed: <<In any event we should find out what is really going on by the end of the month, given that the Encap loan is due then. However, when we find out it will likely be after-the-fact; if the bonds had been renegotiated to a lower conversion price it would have already been locked in by the time the announcement comes out.>> I was involved in another stock on Nasdaq which had floorless debt, and the company/lender was diluting the stock by selling into every rally. The company itself was the Big Seller. This was discovered by one of the posters who contacted the Canadian Transfer agents (it was a Canadian firm) to get the actual # of outstanding shares. It was climbing weekly. The floorles aspect was not negotiated after the fact, like you mention may be possible. The floorless involved conversion of the debt through acquiring shares at a discount to the market price (15% if I remember) and then selling them at the market. The end result was huge dilution as the price fell (they went from 56M to >136M shares over 6 months - extreme case huh? with the share price going from ~$1.50 to 0.12 - suicidal! worse, a shareholder revolt didn't work.) I don't know if it were possible to check with the transfer agent could be done here to remove this uncertainty. If it could be, and the current # shares is greater than the ~34M posted on their website, then we will have our answer. Care to check? The other option is to bluntly ask the company. The only problem is they can lie. The CEO of the company I refer to did!!