ICO Inc. Depositary Shares: Conversion Features

Update on an name recommended a while ago. Ticker ICOCZ.

there are convertible preferred shares or depositary shares thereon.

Arrearage will be made up by September 21, 2007.. Investors get 6.33 in arrears plus regular dividend of 0.42. This only applies to ICOCZ (and not the common stock)

The ICOCZ shares convert each into 2.74 shares of ICOC common stock.

At current price of the common of aroung $14, the ICOCZ are worth around $38 on an as converted basis. Pluse the $6.75 per Depositary Share dividends to be collected by September 21.

So overall an aggregate value of almost $45.

If you own it, keep watching those conversion features that add to the value above the future liquidation preference of the depositary shares.

Of course ICOC has had a very substantial runup in the past 3, 4 weeks. from 10 to 14. this has caught many by surprise. But this makes it all the more likely that the capital structure will be cleaned up one step at a time. so I expect substantial conversion of the remainign 190,000 or so depositary shares outstanding.

I guess people are happy wiht this turnaround. judging from share price performance. who would have thought.

over and out. Z