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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (432)	6/4/1999 7:11:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 1438

You mentioned that the investor can convert the debenture at a small discount and the average of five day closing bid. As well that it is floorless. I haven't read through it in full, but he can convert parts of the debenture. So by selling many shares of the stock in short time, the price of the common stock does suffer (I don't call that manipulation), but selling a few 100k shares can depress a stock price. THe process of selling stock and converting debentures can last for months, if not years. Doing so, he would achieve a certain selling average price and then, when the average bid price (as described) is low enough, he notifies the company that he wishes to convert and can close out his position. Look for phrases líke "the average of the lowest bids within 5,... trading days". Sometimes even directors of a company are within an entity who takes part in financing with convertibles.

To: TH who wrote (432)	6/5/1999 3:51:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 1438

Aastrom appears to go to the well frequently. From the 8-K recently: >>>>>>>> " On May 27, 1999 the Registrant sold to one investor for an aggregate purchase price of $3 million: (i) 3,000 shares of its newly created 1999 Series III Convertible Preferred Stock (the "Series III Preferred"), (ii) a warrant to purchase 150,000 shares of the common stock of the Registrant at an exercise price of $2.275, and (iii) a warrant to purchase 150,000 shares of the common stock of the Registrant at an exercise price equal to 130% of an average market price of the Registrants common stock on November 15, 1999, with such date subject to acceleration based upon certain events. The shares of Series III Preferred are convertible, at the option of the holder, into shares of the Registrant's Common Stock at the lower of (i) $2.34, or (ii) a price based on the market price of the Registrant's Common Stock prior to conversion. With limited exceptions, the shares of Series III Preferred are not convertible into Common Stock until November 23, 1999 and, ....." ... RGC INTERNATIONAL INVESTORS, LDC By: Rose Glen Capital Management, L.P., Investment Manager By: RGC General Partner Corp., as General Partner By:_______________________________________________ Gary S. Kaminsky Managing Director RESIDENCE: Cayman Islands ADDRESS: c/o Rose Glen Capital Management, L.P. 3 Bala Plaza East, Suite 200 251 St. Asaphs Road Bala Cynwyd, PA 19004 Facsimile: (610) 617-0570 Telephone: (610) 617-5900 AGGREGATE SUBSCRIPTION AMOUNT: Number of Preferred Shares: 3,000 Number of Warrants 300,000 Aggregate Purchase Price: $3,000,000 (Other companies with Kaminsky named: edgar-online.com (Info, Ribi,SOFN,BASEA!,CYCH,GENZL,RGCI-the placement company) <<<<<<< From the most recent S-3, datek Oct,7 1998: >>>>>>> PROSPECTUS - ---------- " 4,163,855 SHARES OF COMMON STOCK AASTROM BIOSCIENCES, INC. This Prospectus relates to the offer and sale of up to 5,537,765 shares (the "Shares") of Common Stock of Aastrom Biosciences, Inc., a Michigan corporation (the "Company"). The Shares are issuable upon conversion of shares of 1998 Series I Convertible Preferred Stock of the Company (the "Series I Shares")." SELLING SHAREHOLDER OFFERING BEING OFFERED AFTER THE OFFERING - ------------------- ------------------- -------------- -------------------- RGC International Investors, LDC (1) (2) 2,484,848 2,484,848 0 <<<<<<<<<<<<< How much? There are 3 different figures.