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Fun With SEC Filings

424(b)(5)
FWP
8-K
8-A12G

At first blush, the MVISW warrants seem pretty appealing -- they have a low purchase price (65 cents) and they give you the right to buy MVIS stock at $2.65 through May 2011. I think we all agree that if MVIS is ever going to become the great company that we know it can be, it will be well on its way there by 2011. So a 65 cent 5-year call option with a strike price of $2.65 is really something.

BUT -- the company can redeem the warrants for cash once the stock stabilizes over $5.30. This means (and tell me if I'm wrong) that your possible gain is capped at $2.00 ($2.65 possible gain minus the 65 cent cost to buy the warrant). With MVIS the stock your upside continues to be theoretically unlimited... :-)

Just something to bear in mind. I am sticking with MVIS the stock. And, lots of shares are trading hands -- today's volume of 1,278,058 is really something.

So, here we are. We'll see what Tokman and his team can do with the IPM with $25M to get things moving.

At any time on or after one year after the issuance of the warrants, we may, by written notice to the holders of the warrants, redeem the warrants in full 15 days following the date of such notice; provided, however, that we may only deliver such notice if the average closing bid prices per share of our common stock over a period of 20 consecutive trading days ending on or after one year after the issuance of the warrants is more than 200% of the exercise price [$2.65 * 2 = $5.30] of the warrants. We must send notice to holders of warrants of such redemption within 10 business days thereafter in order for us to redeem the warrants following that trading period. Any warrants not exercised by holders thereof before the close of business on the 15th day after the date of our notice shall expire and be void.

2 comments:

At May 31, 2006 at 2:54 PM Anonymous said...

I know the best way to stabilize any stock is to get the company to perform. I know that Tokman is very good at running a company from the inside. But I think it would be a very good thing to keep the shareholders more informed as to progress being made on all fronts.

 
At May 31, 2006 at 3:27 PM Anonymous said...

I'm a bit confused by what's going on here. WIll Microvision actually pull in $25m selling these warrants? Is there enough demand for the warrants to make that amount?

If Microvision doesn't make enough money from selling the warrants in short order to cover its ongoing expenses, what happens then? Not in a position to turn a real profit every quarter doesn't exactly give them the capital to keep developing. Short of receiving a shot of spare cash from someplace, wouldn't they be forced to close shop in rather short order?

 

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