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

To: Herb Blair who wrote (11120)	5/12/1999 12:50:00 PM
From: lws	Respond to of 27311

Hi, Herbert, While I'd love to think they have enough money now, I suspect they do need the money. While there are probably a number of possible reasons for postponing the shelf registration, I am guessing the delay indicates a decision to do one more round of private funding to carry them to production. The shelf registration would be revived when new stock could be issued at a more favorable price -- and Lev had a week free to do a roadshow. My guess is based on the presumption that a private funding deal could be done more quickly and easily (on Lev -- a truly busy man) than a secondary stock offering. I am almost certain it would not require prior SEC notification. I recall that the Castle Creek SEC filing was a few days after the deal itself was announced. In referring to Castle Creek, however, I don't mean to suggest that another private funding would likely entail a floorless conversion privilege. It seems to me that Valence is close enough to production and orders to need only a relatively small amount of money. I expect the nearness of production and orders, and the small amount of money, would combine to make it possible to avoid such an unfavorable provision. Already Lev has been quite good at minimizing stock dilution, and I don't expect him to accept the risk of a significant dilution now. Meanwhile, all body parts remain crossed and the children are in reserve. Regards, lws