RE:RE:RE:a $152mio corporate actions on the table the debt does NOT have to go away
the potential dilution has to disappear!
simple math applies here :
IF correct corporate value would be 300 mln (I think it's higher...)
then with 93.2 fully diluted amount of shares the price would have to be 3.2
WHEN the convertibles are redeemed (to keep it simple, all are redeemed), then the corporate value would still be 300 but net, there would be 152 mln in debt so this gives equity value of 148.
BUT this 148 needs only to be divided by 21 mln shares instead of 93 !
this gives a value per share of 7+ ...
ok, you would have to keep on paying gold linked intrest rate on the debt and hereby reduce net profit but still, a LOT of value would be unlocked if this refinancing succeeds!!!
as for the redemption of convertibles, this is what the legal stuff says about early redemption:
7.1 Applicability of Article Subject to regulatory approval, the Corporation shall have the right at its option to redeem, either in whole
at any time or in part from time to time before maturity, any Debentures issued hereunder at the Redemption Price, and on such date
or dates and in accordance with such other provisions as shall have been expressed in this Indenture and in the Debentures.
7.7 Cancellation of Debentures Redeemed. Subject to the provisions of Section 7.2 as to Debentures redeemed or purchased in part,
all Debentures redeemed and repaid under this Article 7 shall forthwith be delivered to the Trustee and cancelled and no Debentures
shall be issued in substitution for those so redeemed and repaid.
“Redemption Price” means, in respect of a Debenture, the principal amount plus accrued and unpaid interest up to (but excluding)
the Redemption Date fixed for such Debenture, payable on the Redemption Date.