What is the date of the latest agreement w/ Cornell? The information below is from MOBL's FORM 10-QSB For the Quarterly Period ended December 31, 2004. Does anyone have access to the SEDA filings? I wonder what happens to the stock after the escrow agent receives it; I assume that at some point it is taken out of escrow and given to Cornell to presumably either hold or sell. If Cornell shorts other shares of MOBL, wouldn't they just be decreasing the value of the shares they receive as part of the financing agreement? Of course, if they expect the pps to rise after they stop shorting, they can reap the profits from the shorted shares and hang onto the SEDA shares until the future.
Any thoughts on this and other MOBL pps issues?
TIA,
Dino
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On May 13, 2004, the Company entered into a $100 million Standby Equity Distribution Agreement arrangement with Cornell Capital Partners, L.P. The Standby Equity Distribution Agreement provides generally, that Cornell will purchase up
to $100 million of common stock over a two-year period, with the time and amount of such purchases, if any, at the Company’s discretion. Cornell Capital will purchase the shares at a 2% discount to the prevailing market price of the common stock.
There are certain conditions applicable to the Company’s ability to draw down on the Standby Equity Distribution Agreement including the filing and effectiveness of a registration statement registering the resale of all shares of common stock that may be issued to Cornell under the Standby Equity Distribution Agreement and the Company’s adherence with certain covenants. The registration statement became effective May 27, 2004.
In the event Cornell Capital holds more than 9.9% of the then-outstanding common stock of the Company, the Company will be unable to draw down on the $100 million Standby Equity Distribution Agreement.
In the nine months ended December 31, 2004, the Company drew $9,200,000 from Cornell Capital Partners, L.P, in accordance with the $100 million Standby Equity Distribution Agreement and advanced 60,000,000 shares of its common stock to the escrow agent as part of these loans. As of December 31, 2004, $-0- remains outstanding and 52,172,192 shares of common stock were converted for the nine months ended December 31, 2004.
