Rim Semiconductor Company (fka RSMI)

[pengy]

rusty, NVEI has issued preferred shares as collateral and not common shares as outlined in the last President's Letter.

"As of today, we have issued about 92,000 shares of preferred stock to Mercatus in connection with proposed loans of about $2.4 million. If for any reason they fail to make the loans, the preferred shares will not be convertible, will have no liquidation preference, and must be returned when we ask for them. For our part, we agreed to use our best efforts to authorize and set aside a sufficient number of shares of common stock in case we default and they want to convert their preferred stock into common stock. So, if these loans are made, we will need to reserve and set aside approximately 92 million shares of our authorized common stock."

So IF the deal does not close those shares are returned back to NVEI.

Source: http://www.newvisual.com/letters/pres_letter_7.18.03.cfm

Pengy