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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by bond46on Jul 26, 2013 10:32pm
484 Views
Post# 21634022

RE:RE:Possible buyers in town......

RE:RE:Possible buyers in town......Don't  open the champagne yet guys; this company is insolvent and if it is sold say at book value of $1, guess who is going to get the money: Marret will. With the right of bond conversion of $10million worth  into equity, as soon as the company receives an offer to buy the company for, say, $200million, Marret is going to convert and Cline must issue 2billion shares to Marret; if you devide $200 by 2billion shares each share will fetch 10cents. If you own 100k of CMK, you get $10000, big deal. But again we must consider the debt to Marret. Say the price is at book, $1, If the offer to buy the company is $200million, we must subtract from that the debt, say $70million. What is left for equity is $130million. If Marret converts to 2billion shares, if we divide $130million by 2billion shares plus the 210million shares curently outstanding, we have something of 6cents a share. If you own 100k shares of CMK, you'll get $6000, enough for a trip to Hawai for a month.So what  is there to get excited about? The deal of financing that Mark Haywood closed with Marret is a graveyard deal for current shareholders if there are no conditions under which Marret can convert the bonds into equity. This is the reality of the situation and there is nothing to cheer about.  
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