RE:Question
That 108 million was just thrown out there if there was 100% uptake in the conversion deal. Right now the public float should be around 101 million with the 25% whom have elected to convert. That leaves 66 million of the pref's who have either not decided or are likely to go for the conversion deal because essentially it is a better bang for your dollar. If at this point since only a 1/3 of the notes are convertible and we get 100% uptake on the remaining 75% we would be left with 122-23 million in the float when all is said and done. So why would one convert now when essentially they are only getting 50 cents on the dollar to do so. 1) Fund mandates which don't allow for certain types of debt instruments. 2) They see more upside in the stock? My guess is when this deal was proposed by the board that the majority of big holders were already onside....more than 50% That would include Sculley, McMillan etc. It was quite obvious AGF for whatever reason did not want the notes. SO they have given notive and possibly one more large holder like Fulcrum? So the news yesterday didn't really change anything for me. Those 25% would have taken the 1 for 1 whether it was end of Jan or end of Feb. It did push back the timeline however for clearing this structure cap by a week. If you check Canada stockwatch there has already been a jump in the float from these conversions. Conversion does not necessarily mean liquidation that's for sure or there would be way more pressure on this thing. That's my read....anyone else care to take a stab?