11% of outstanding debenture has traded in last 4 days
it odd that people want to ignore facts, that are present to see, if you want to look. Its clear that someone is making a big move on the debentures, and that debt is 80% of the market capitalization of this company. That's a fact. The yield to maturity on this debt, is 67% - that's a fact. Today, we have had 1,350,000 of face value of this debt trade, with the biggest piece bought by Dundee ... who you never see buying the stock. Yesterday 412,000, day before 3,136,000 and day before that 636,000 of the debenture traded. That totals $5,534,000 of face value of the debt has traded this week, a 4 day trading week. The total face value of the debenture outstanding is 50m for this issue. Now these are facts, they exist for everyone to see for themselves in the market. Each person can speculate and draw their own conclusions on why this happening, what is going on, and what it all means. I have done, there has not been any other comments made by anyone on this. The reality, and the fact is ... that if the company cannot repay this debenture in 11 months, the debenture holders will likely end up owning the company. These are facts, this is reality, its worth watching. IMO, the company needs to do many things from slashing salaries immediately, and operating costs. They should have a normal course issuer bid, to buy back some of this debt at these low levels. Since they have changed course from what I read in the circular ... IMO, you are seeing the result of that. We know that many US hedge funds are active in buying distressed debt of oil and gas companies. Debt with a yield to maturity of 67% is distressed by any measure. These are facts, they are there in the market, and disturbing as a shareholder. Unless someone gets with it very quickly.