CL - Oct. 2004
Wave cannot force call the warrants until 18 months after April '03.
But that doesn't mean that the price trigger function is not ticking away right now. If the milestone is met (which looks exceedingly likely), the warrant holders would be in-the-money and could choose to exercise. Wave just can't execute a forced call of the H warrants until 15 months from now. Nevertheless, it'd be an asset they could leverage even before then (e.g. debt - bridge-financing).
My understanding of the H pref. conversion to A common is that the price trigger ($1.90 for 15 of 20 consecutive trading days) is in play now. Assuming s/h approval is in the offing (& it's looking like the SHM will be a love-fest), Wave can presumably force the conversion of the preferred later this month.
I totally agree that a WXP IPO is increasingly likely & any firm that wants a piece of Wave is likely to offer their IB services, initiate coverage of WAVX, etc. IPO monitor indicates that July was the heaviest IPO month of the year so far... the appetite for new issues is growing.
Wave owns b/tw 75 - 85% depending on the treatment of the start-up notes & could monetize WXP for at least $100mil IMO.
If they continue to grind out news/deals, i think that amount could climb to $250Mil in a matter of a few months.
then there's the SSPX shares (though i'd rather see Wave use that leverage to further their govt. offerings).
I shared your financial concerns (now *that* is an understatement!) before, but i think w/the current landscape it's almost a non-issue now...
I'm amazed w/Wave's ability to keep these deals under wraps & simply MUST tip my hat to them for that (& i'm left wondering if they did the loan shark financing b/c they couldn't disclose the imminent deals AND knew that, as late-great Bob Marley'd sing, "cuz, every little 'ting's gonna be all right."
don't worry,
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