Concordia Healthcare Corp. T.CXR.R

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Concordia Healthcare Corp. > Wouldn't financing drive the price lower? +dilution & +debt?

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Comment by wallop13on Aug 20, 2016 5:21pm

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Post# 25161431

RE:RE:Wouldn't financing drive the price lower? +dilution & +debt?

Sorry. I meant to say 50 million shares. Not 50 thousand.

wallop13 wrote: No. Even if they were to issue 50,000 shares at $12 and put that money towards debt the share price would rise because the enterprise value would stay the same, but the bankruptcy risk would be lower. Hence the share price would rise. But the rise would be more limited because the market cap would rise twice as fast with double the shares.

JAInvestor wrote: J