TSX:CHE.DB.E - Post by User
Comment by
SurfacePro7on Mar 03, 2021 3:39pm
263 Views
Post# 32707433
RE:Short term pain coming
RE:Short term pain comingThis is a classic banking playbook.
1. Banks provide credit facility to company
2. Banks work with company to support the stock
3. Engage all the banks you owe money to underwrite a new equity issue
4. Pay banks an underwriting fee of 5%, and use the proceeds to pay the banks back
5. Punt the new equity over to retail buyers who get lured by the yield and promise of better days ahead
Very clear short term winner here, but optimistically hoping the recovery and underlying fundamentals are strong and everyone wins in the long-term!