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Technology Stocks : CYOE / Diana Corp. Why has the SEC not halted this pig? -- Ignore unavailable to you. Want to Upgrade?

To: dumbmoney who wrote (200)	6/3/1999 8:13:00 PM
From: Daniel Chisholm	Read Replies (1) \| Respond to of 242

Thoughts re: JNC's $7M floorless. According to the 8-K I read today, CYOE paid JNC $4M cash. This was to retire 600 of the 700 shares of preferred, and to fix the conversion rate of the remaining convertible at $6 per share. Now discount convertible preferred shares typically have a face value of $10,000. In the case of CYOE's 700 shares of preferred for a $7M placement would indicate that this is the case here too. Now tell me if I'm dumb and missed something, but did not CYOE just pay $4M to retire shares that they originally sold for $1M? !!!! - Daniel EDIT: I realize now that I missed this $4M-for-$1M deal when it was announced in the 28 May 99 Yahoo! news release. Though the news release did not specify the original amount of the convertible as being $7M, just that after paying $4M there would be $6M outstanding: biz.yahoo.com The net proceeds of approximately $10.2 million are to be used for working capital and to redeem $4 million of the outstanding Convertible Preferred Stock. In connection with this redemption, the conversion price of the remaining $6 million of Convertible Preferred Stock was fixed at $6.00 per share and the Company issued 18-month warrants to purchase 325,000 shares of common stock at $6.00 per share.