Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Joe Wagner who wrote (22336)	6/3/1999 11:37:00 PM
From: eric sahlin	Read Replies (2) \| Respond to of 29386

Ancor's needed Financing: This warrant issue to Sun is very interesting. When SUN exercises these warrants they pay cash ($7.30 per warrant) to Ancor and Ancor issues additional shares. I originally questioned this tactic by Ancor as a "sweetner" to get SUN on board; but I see it differently now. This is also method to get some financing that Ancor needs (1.5M x 7.30 = $10,950,000). A nice chunk of cash when SUN starts exercising these warrants. In order for SUN to buy into this warrant deal they must think there is some upside to Ancor: a positive fact that SUN wants to "share" in Ancors growth. A creative method of financing and relationship building. Like others have said, this leads me to think that SUN & Ancor expect SUN's customers to start receiving switches this year. It would be interesting to ask managment their strategy behind the warrants. It's been 3 1/2 years for me. Well worth the wait. Congratulations to our exceptional managment and Ancor employees. Eric P.S. Sun mentioned scalability and Ancor's future product roadmap. The things Ken has been telling us all along that put Ancor out in front. Where's the Cocoon?