To: tool dude who wrote (118 ) 6/4/1999 7:55:00 PM From: dumbmoney Read Replies (1) | Respond to
Some notes on the S-3:Series A Preferred Stock is convertible, at the option of the holder, into the number of shares of Class A Common Stock equal to $1,000 divided by 75% of the average closing price of the Class A Common Stock on the Nasdaq SmallCap Market or, if not then traded on the Nasdaq SmallCap Market, in the over-the counter market for the ten trading days immediately prior to the conversion date, at a conversion rate of $5.00 per share until December 31, 1999 with respect to 6,940 shares of Series A Preferred Stock and a minimum conversion rate of $3.00 per share and a maximum conversion rate of $5.00 per share with respect to 2,700 shares of Series A Preferred Stock. As of January 1, 2000, all outstanding shares of Series A Preferred Stock will have a minimum conversion rate of $3.00 per share and a maximum conversion rate of $5.00 per share. Nasdaq imposed certain conditions on the Company in order to permit the relisting of the Class A Common Stock on the SmallCap Market, including a requirement to raise an additional $2,000,000 in equity and to amend the terms of the Series A Preferred Stock to include a floor on the conversion rate.
