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Finjan Holdings, Inc. Message Board

  • chstephens99 chstephens99 Mar 12, 2009 4:44 PM Flag

    Form 8-K for CONVERTED ORGANICS INC.

    Anyone have any PRODUCTIVE thoughts on this development?

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    • The new financing is fine - as announced.

      However, there's a catch when it comes to the previous extension. Not only did they do the original bondholder a huge favor by letting them draw the conversion out over 6 months, instead of simply giving them shares at $2.25, they also did this knowing they needed a few more million $. They did the extension with some weak anti-death spiral restrictions (only can dump 15% of avg daily volume, etc)

      Now they raise the new $. However, the old bondholder had to sign off on this addl dilution ???? And to get this signoff, they give up all conversion restrictions.

      "On March 6, 2009, the Company entered into a second amendment to the secured convertible debenture dated January 24, 2008, as previously amended on January 29, 2009, held by the investor and one of its affiliates. The January 29, 2009 amendment had provided that the debenture holder would not sell shares of Company common stock on any trading day in an amount greater than 15% of the daily volume of the Company’s common stock for such trading day as reported by the NASDAQ stock market; provided that such limitation shall not apply at any time at which the Company’s common stock is trading at above $3.25 per share. In the second amendment, the Company agreed to waive the foregoing restrictions upon the funding by the investor of $500,000 into escrow as discussed above, which has occurred."

      • 2 Replies to orange4yellow
      • Why are you posting items that are already on the board?

      • A glass half full view might be that CO is so confident that they will meet production commitment that they are ok with bondholder "dumping" more than 15% a day. Bondholder might be leaving alot on the table by unloading at such a low price. How long would it take them to buy it back without driving price up big time? There's been alot of speculation that this company will sink or swim in the next 60 days or so...not alot of time to unload or stock up on anything without getting alot of attention.

        Just a thought...

    • This type of financing is fastest, especially in tight credit markets, but also riskiest. The bottomless conversion rights can be used by sharks to snatch a company (or to short it to death). Having said that, IF the company is at the stage where they just need a little more time and IF the hedge funds are smart enough to see the potential in replicated factories/a whole new industry, this could be OK. Only Ed knows if that's the case. They ARE producing and shipping and they DO have the patent on the technology. And, last I heard, Ed had not sold any shares AND had taken pay cuts, both of which imply he means business. All they need is a successful prototype factory and this company can find support from a number of markets (see my other posts on HAULERS, etc.)and be wildly successful. I DO wish the conversion aspects had a bottom in their formula.

    • Hope this send youto the 8-K I am referring to

      http://biz.yahoo.com/e/090312/coin8-k.html

      • 1 Reply to chstephens99
      • On March 6, 2009, the Company entered into a second amendment to the secured convertible debenture dated January 24, 2008, as previously amended on January 29, 2009, held by the investor and one of its affiliates. The January 29, 2009 amendment had provided that the debenture holder would not sell shares of Company common stock on any trading day in an amount greater than 15% of the daily volume of the Company's common stock for such trading day as reported by the NASDAQ stock market; provided that such limitation shall not apply at any time at which the Company's common stock is trading at above $3.25 per share. In the second amendment, the Company agreed to waive the foregoing restrictions upon the funding by the investor of $500,000 into escrow as discussed above, which has occurred. In a nutshell, the chief said you can endure bunga-bunga or death by bunga-bunga! I would suggest selling all shares immediately, but no one seems to take my advice. Good Luck.

 
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