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Entertainment Gaming Asia Inc. Message Board

  • pjv2xyw9dww4b5 pjv2xyw9dww4b5 Nov 21, 2006 3:07 AM Flag

    Elixir warrants

    In http://biz.yahoo.com/prnews/061011/nyw081.html?.v=75 appears, "Pursuant to the equity investment in VendingData, subject to shareholder approvals and any required regulatory approvals, Elixir will be granted 16 million warrants with exercise prices ranging from $2.65 to $5.50 per share -- with a potential total investment of over $50 million."

    It is also possible that Elixir will take shares without paying cash. In http://www.sec.gov/Archives/edgar/data/1004673/000114420406047790/v057555_ex10-3.htm under COMMON STOCK PURCHASE WARRANT appears:
    "c) Cashless Exercise. This Warrant may also be exercised by means of a �cashless exercise� in which the Holder shall be entitled to tender Warrants for cancellation and in return receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

    (A) = the VWAP on the Trading Day immediately preceding the date of such election;

    (B) = the Exercise Price of this Warrant, as adjusted; and

    (X) = the number of Warrant Shares issuable upon exercise of the Warrants tendered for cancellation in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise."

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    • pj, regarding the concept of a 'cashless transaction' ...
      you DO understand the concept.. right? or do i have to explain it to you?

      try envisioning the situation where there is a pending acquisition for a company in which you hold a warrant.

      your warrant is 'in the money' on the basis of the purchase of that company.

      as a holder of the warrant, your 'cashless transaction' allows you to take the difference between your exercise price and the price the shares are being purchased for in the acquisition.

      not rocket science!

      nice try

      • 2 Replies to cranberryvino
      • I understand the "cashless exercise" feature and see it in 8-Ks now and then:

        an ImageWare Systems example ( http://www.sec.gov/Archives/edgar/data/941685/000110465906076598/a06-23455_18k.htm ) :

        "On November 14, 2006, ImageWare Systems, Inc. (the �Company�) entered into a Securities Purchase Agreement with certain accredited investors (the �Investors�) pursuant to which the Company sold to the Investors an aggregate of 2,300 shares of the Company�s Series C 8% Convertible Preferred Stock (the �Series C Preferred Stock�) at a stated value of $1,000 per share for aggregate gross proceeds of $2,300,000, and issued to the Investors warrants (the �Investor Warrants�) to purchase up to an aggregate of 115,000 shares of common stock of the Company with an exercise price of $1.575 per share (the �Financing�). In connection with the Financing, the Company issued to a placement agent and its affiliates warrants to purchase an aggregate of 40,000 shares of common stock of the Company with exercise prices of $1.575 per share (the �Placement Agent Warrants� and, together with the Investor Warrants, the �Warrants�). The Warrants may be exercised at any time from May 14, 2007 until May 14, 2012. In addition, the Warrants contain a �cashless exercise� feature. Certain of the terms of the Series C Preferred Stock are described under Item 5.03 below."

        Notice that the 8-K mentions the cashless exercise feature.

        If you search for "cashless" (or even "cash") in the Vendingdata 8-K ( http://www.sec.gov/Archives/edgar/data/1004673/000114420406042599/v055005_8k.htm ), you find nothing.

      • ScamMan,

        You do understand the concept of 'credibility'.

        Try envisioning a poster who never gets antyhing right but pompously pretends he's always right.

        Then look in the mirror.

        It's not rocket science!


        Go SHFL!

 
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