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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Skiawal who wrote (15874)	4/16/1999 12:36:00 PM
From: Mad Bomber	Read Replies (1) \| Respond to of 21342

[short term financing] This looks like stop-gap to me. 20 mil is not that much considering they have been burning like 3 mil. per month. I wonder if they will have further financing when stock at higher price. I am not very impressed. Also, not that impressed with names of participants --- was hoping for industry partner investment. Dr., what about FUJ?? MB

To: Skiawal who wrote (15874)	4/16/1999 12:39:00 PM
From: schlep	Read Replies (2) \| Respond to of 21342

I post this question: 909k warrents to be converted to shares => about 6% dilution in the 15M float shares or about 2.5% total shares. Is this news so great? If westell in the future is lets say 2x the conversion price, then they will need to write off the gain of ~$5M ($6.37 * 909K). Considering they are only getting $20M in financing, it appears that they are paying through the nose for it, not to mention the 6% interest on the Debentures. What am i missing besides the fact that they absolutely needed it now. WSTL would make a great television anti-drugs advertisement - this company is on Crack. See how well it performs. Comments Welcome. GS