GREY:LSTMF - Post by User
Comment by
orlandoflon Jul 20, 2016 9:05am
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Post# 25067974
RE:re Proposed Deal
RE:re Proposed DealWhat is being proposed as I understand it and IF THIS DEAL GETS DONE
100K shares would be down to 2.25% of new total = 2,250 shares
New float of 100M
you would have the right to buy up to 7,500 shares at an exercise price of high 12's to high 14's for a period of 5 years -
The price would increase every 6 months equal to what the secured debt holders would have received in interest payments on up the high $14's price
They would wipe out a lot of debt and be left with about $400M in debt
If the deal goes through it could have some upside, but if unsecured debt holders vote against it they could end up being forced to sell assets.
The current market cap with debt is roughly $1.5B
If it stayed exactly the same, if the deal went through - you would be looking at about $11 a share = around $0.25 per share plus the chance for upside with warrants to purchase stock - which could add money to the company. $11 + $4 equivalent of debt per share would equal a market cap of $1.5B