The volume has dried up from the previously high l
Post# of 30066
Posted On: 11/09/2015 10:18:04 AM
The volume has dried up from the previously high levels.
But I disagree with some of your post.
The Series H were covered under the shelf registration (i.e., the S-3). That was for $150 million.
The S-1 you reference was for the 12% convertible notes and warrants.
And I don't think they are forbidden from selling shares in the open market until the loan is paid in full. I think they are forbidden from selling shares in the open market at a price lower than the conversion price until the loan is paid in full. Given that the conversion price is 75% of the price that the stock is trading, they are free to issue shares in the open market at the market price.
But I disagree with some of your post.
The Series H were covered under the shelf registration (i.e., the S-3). That was for $150 million.
The S-1 you reference was for the 12% convertible notes and warrants.
And I don't think they are forbidden from selling shares in the open market until the loan is paid in full. I think they are forbidden from selling shares in the open market at a price lower than the conversion price until the loan is paid in full. Given that the conversion price is 75% of the price that the stock is trading, they are free to issue shares in the open market at the market price.
Quote:
The shelf registeration for the sep 30 financing of series H and 12% convertible notes was for about 9 mil shares. About 2.8 mil of those are in warrants convertible at $2. Taking the warrants aside, since it will be a while before the price gets high enough to convert, they can not convert more than 6.2 mil shares unless they do another shelf registration and have it approved by SEC. They still have to issue shares to make payments on the loan (principal + interest) until the loan is paid in full by sep 2016. The volume since Oct 15 is about 6.6 mil. In fact it is about 2.7 mil since 11/2, the day SEC issued a notice of effectiveness. So I think they are close to exhausting the convertible shares. Oh BTW, going forward AMBS is forbidden to sale shares in the open market until the loan is paid in full.
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