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

To: chester lee who wrote (910)	4/29/1999 11:45:00 PM
From: golden_tee	Read Replies (2) \| Respond to of 10293

Sure, this 5 year old lawsuit is totally relevant to the current state of this company. This news came out this a.m. and the market yawned. Have fun with it.

To: chester lee who wrote (910)	4/30/1999 3:15:00 AM
From: Bill Wexler	Read Replies (1) \| Respond to of 10293

A fraud suit? Against Valence? I can't imagine why.

To: chester lee who wrote (910)	4/30/1999 11:09:00 PM
From: incomep	Read Replies (1) \| Respond to of 10293

[Help: I had a math problem for VLNC] 5. PREFERRED STOCK In July 1998, the Company completed private financing arrangements of up to $25 million. The Company issued 7,500 shares of Series A convertible preferred stock and warrants at $1,000 per share, raising gross proceeds of $7.5 million net of transaction costs of $425,000. The Series A convertible preferred stock accretes at an annual rate of 6% per year, and is convertible into common stock based upon defined conversion formulas. The Company has a commitment from an investor to purchase an additional 7,500 shares of convertible preferred stock upon completion of certain milestones. In connection with the equity financing, the Company issued warrants to purchase 447,761 shares of common stock to the Series A investor. The warrants are exercisable at a purchase price of $6.78 per share and expire in July 2003. In addition, the Company issued warrants to purchase 87,500 shares of common stock to the placement agent. The warrants are exercisable at a price of $4.94 per share and also expire in July 2003. The warrants have been valued at a total of $1.35 million using the Black Scholes valuation method and recorded as a component of common stock. Under the terms of the certificate of designations of the preferred stock and the warrants, the preferred stock investor may not convert the preferred stock or exercise the warrants if after doing so the investor will own more than 4.9% of the Company's common stock. Question 1: how can 447,761 shares of common stock of warrants exercisable at a purchase price of $6.7 only worth less than $1.35 million. Question 2: The company has over 25 million shares, how can half million shares of warrant exercise possibly arise more than 4.9% of the Company's common stock. Do I smell sth?