Replies to post #4694 on TriCell LTD (fka TCLL)

[Grassrootpartners12]

1) No - its fixed price and has nothing to do with Market. The only way Barron can make money is if the stock goes up.

2) No - that would not be over the open market. If the company was buying stock, they would have to be filing Form 4's which you would see.

3) Not sure - unfamiliar with the issue

4) The derative loss is a GAAP accounting issue - its a non cash charge. If you look at companies issuing pipes across the board, you will see this taken place. Sometimes its more extreme then others depending on how its accounted for by the auditors - but it has zero effect on the performance or the cash of the business. Its a non cash charge that effects the cosmetics of the financial statements.

[jking1999]

tsquared answers are correct, except for a detail that is outside the area your question covers.

For item 1, the price of the stock will not affect how many shares Baron gets, thus Barron would make more profits on the options if the price goes up. However, the price of the options can be affected by a clause that stipulates that if TCLL doesn't achieve .08 per share in pre-tax income for the full year, Barron's cost for the warrants gets cut in half, if my memory serves me well.

As for your question about the derivative loss, that loss, whether higher or lower would still be there, but totally immaterial to how well TCLL is or is not doing. I could cite a couple of things that I think are red flags, but a non-cash charge is not one of them.

The ammendment may very well reduce how many shares the insiders eventually get, and that would be a big help to the OS and to the ability to achieve the .08 per share value that would prevent Barrons getting warrants at much lower prices, but how much the non-cash charge could have been or would have been is absolutely immaterial.

The whole focus on this non-cash charge is, to say the least, absurd. I see red flags, but this isn't one of them.