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

To: alan f fletcher who wrote (10537)	4/20/1999 9:22:00 AM
From: David Penfield	Respond to of 27311

It looks like the S-3 covers $50,000,000 of stock and it doesn't specify which type (common, convertible, warrants). I guess we will have to wait and see what kind of dilution is coming.

To: alan f fletcher who wrote (10537)	4/20/1999 9:30:00 AM
From: Chuck Lehman	Read Replies (1) \| Respond to of 27311

It's a shelf registration for $50 million worth of stock. VLNC is not going to issue these shares today. My read is that this is consistent with Lev's statement on the last CC in which he acknowledges needing more funding but he wanted to do it at more favorable stock prices. A PO is probably not that far away, allowing them to obtain cash flow funding at attractive prices. Otherwise, they would have gone the convertible preferred route as they did with Castle Creek and Baccarat. The bears will see this differently but I view it as a sign of confidence not panic by VLNC.