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eWeek: SCO Building Up a 'War Chest'

Oct 17, 2003, 19:00 (6 Talkback[s])
(Other stories by Peter Galli)

"The ability to build up a 'war chest' of cash was too compelling to pass up--and so The SCO Group agreed to a $50 million investment deal, announced yesterday, with investment fund BayStar Capital.

"In a media and analyst teleconference Friday, CEO Darl McBride said he is pleased with the structure of the transaction, which is favorable to both the company and its shareholders. 'They are non-voting convertible shares and, once converted, the investors will own 17.5 percent of the company's outstanding shares,' he said.

"SCO Chief Financial Officer Bob Bench said there is no timing on the conversion of the shares, which are immediately convertible and have to be redeemed in minimum batches of 100,000 common shares at a time. There is also mandatory redemption once the stock price reaches 150 percent of the transaction value or 20 consecutive trading days at that level..."

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Related Story:
SCO Group Receives $50 Mil Shot in Arm(Oct 17, 2003)