RE:RE:great news Shareholders have had years to switch into the debentures and a month to switch in knowing the new terms and yet still haven't done so. Hard to blame management for that.
They can still increase their share count by over 50% by doing that this morning and lower their cost base by over 33%. It might not get back to a dollar but if they switch into the debentures they will make more money if the common gets to 67 cents.
theTransporter wrote:
I wouldn't say it's "great" news.
Good that debt is taken care of, bad that it's going to take about 240 million shares in dilution to do it.
With already 350 million shares outstanding, this can go up to 590 million shares in the float.
If in the future they earn themselves and market cap of $400M, instead of $1.14 per share, you would get $0.67 per share instead.
This is a b1tch slap to the face for shareholders except those entering positions in the last 30 days.
I bet you a reverse split will be next on the table as this will never see $1 under the new share structure.