- 28 - share of the Sun preferred stock covered by the stock warrants issued to CV was converted into 15 shares of Sun common stock. Consequently, for each of the two stock warrants, CV had the contingent right to purchase 150,000 shares of Sun common stock. The first warrant to purchase Sun common stock (at a price of $8 per share, derived by dividing the original exercise price of $120 per share of series F preferred stock by 15, corresponding to the 15-to-1 conversion ratio referred to above) became exercisable in the fourth quarter of Sun’s 1986 fiscal year (i.e., April through June 1986) and was exercised on November 24, 1986. On that date, CV sold its rights to the first warrant to an underwriter, who then exercised the first warrant. The closing sale price of Sun common stock as reported in the NASDAQ National Market System on November 24, 1986, was $19.375 per share, or $11.375 per share greater than the $8-per-share exercise price. During January 1987, the second warrant became exercisable by CV (at a price of $10 per share, derived by dividing the original exercise price of $150 per share of series F preferred stock by 15, corresponding to the 15-to-1 conversion ratio referred to above). CV sold its rights to the second warrant (the "second warrant") to an underwriter on March 12, 1987. The closing sale price of Sun common stock as reported in the NASDAQ National Market System on March 11, 1987, was $31.375 per share, $21.375 greater than CV’s $10-per-share exercise price. CV received a net amount of $3,002,750 in proceeds from sale of thePage: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Next
Last modified: May 25, 2011