RE:RE:RE:RE:Jack Haze I think the debentures would trade up on a financing. The bigger the better. At the worst, it just contributes to the recovery value and at best they start buying debentures back in one form or another.
If I was on the BOD, I would be recommending $10m equity issue at say 30 cents with like a 6 month warrant at 40 cents to make it more attractive. I would use the proceeds for a SIB on the FIRE.DB at a range from 25-50 and see how we do. At worst you raised some cash you will need and at best you effectively doubled the price on your equity issue buy taking down the net debt down by $20m.
I would do that every quarter at least if the market was capable of taking the supply.
That being said, I'm biased to survival but Beena may already have a buyer lined up in which case it's all moot but most certainly the equity will underperform the debt from my perspective. Given my value bent, I can't even touch the equity but there are smarter investors here that know the growth mindset better.
brentkosta wrote: it does make compelling sense to me. Im coming over to your way of thinking here. The reward of 400% vs the risk of losing it all is a nice gamble. You might lose less as an equity holder if you jump ship as it sinks into the abyss, but there is no real reward as I see it.
There must be a big financing deal coming. Id say we'll see the float doubled in the next 6 months. You'd love that I bet. What do you think will happen to debs if a big raise is announced. I cant see them putting that cash anywhere else but debt
Method wrote:
Byb1985 wrote:
The haze made me buy 5000 shares lol
could have bought $5000 in bonds and saved a few sheckles while getting a nice interest payment every 6 months of $150 on your investment of $1345. Use your interest to buy 12.5 grams of Haze every 6 months. If the company is still around next October you get $5000 but no more interest payments.
Don't worry, you can still do it tomorrow.
Does this math make compelling sense to any equity holders?