ViewCast (VCST)

[Telephonics]

Adinger has been funding VCST for years but this agreement
"conversion of $9,259,582 outstanding indebtedness for a combination of the issuance of 80,000 shares of unregistered convertible preferred stock with each share having a stated value of $100.00 with voting rights on an "as converted" basis with the common stock, the issuance of 2,862,687 shares of unregistered common stock and issuance of a seven year warrant to purchase up to 2,500,000 shares of Common Stock at an exercise price of $0.48 per share"
carries the potential for massive dilution. At yesterday's high of $0.52 he could have sold 2,5000,000 shares and pocketed a profit of $100,000.

This news is not all thaat good.