Rao,
It is the offering of stock to Kings Road, i.e. the end of the toxic financing paid off Sept 15th 2006. It appears they are getting the final pay off. You may recall the 20 day period when it was in their interest for the stock to be as low as possible and the stock went through a bit of a rocky period.
The good news is, this is not stating they will be dumping all the shares in one go and I imagine they won`t dump any with the imminent GE news and they will hold and ride this stock up over the next month or two or keep longer term for a much better return, a win/win situation for them.
The S-3 also shows that the outstanding $900,000`s for the other 50% pay off to Frank for the MST deal is due Jan 2007 and no further payments until they reach 3300 subscribers for their quadruple play within a 3yr period.
Personally I don`t think this S3 is any great shakes, but legally has to be filed and I can`t see them dumping those shares short term unless they don`t care what price they get for them.
I will post the final 130% pay off after this.
Hope this helps you Rao!!
Christine x
SELLING STOCKHOLDER
The shares of common stock being offered pursuant to this prospectus by the selling stockholder include shares of common stock issuable to the selling stockholder upon exercise of the warrants (i) issued in connection with the repayment of the Convertible Senior Note on September 15, 2006, (ii) issued on October 27, 2005 in connection with the issuance of the Convertible Senior Notes and (iii) issued in January 2006, July 2006 and August 2006 in connection with accelerated payments under the Convertible Senior Note. For additional information regarding the issuance of these warrants to purchase common stock, see “Business History” beginning on page 1 of this prospectus. We are registering the shares of common stock in order to permit the selling stockholder to offer the shares issued upon exercise of the warrants for resale from time to time. Except for the ownership by the selling stockholder of our securities, the selling stockholder has not had any material relationship with us within the past three years.
AI
