RE:RE:RE:RE:RE:RE:RE:Jack Haze What's the point of a bought deal financing at .30 cents and SIB.
the moment you do a SIB the debentures will trade way higher and you don't know if it will be successful in buying a significant amount of debentures -
yes you get the cash - but it's at a low price and causes dilution.
In the end you need to clear the debentures - all of them - not just a portion - and so who is going to take 200mil+ shares at .30 to clear debentures. It's not going to happen.
With increased cash flow and profitability - it puts supreme in a position to add debt and convert the debenture to a term loan.
MMCap doesn't have a choice -
term loan, or extend maturity, or take a huge haircut with a combo of cash and shares.
No one is taking tons of cannabis stock paper. It's not happening.
zenabis did it - it's not unprecedented.
I meant debenture made whole - and the equity in an excellent position for growth with the sector.