RE: NEWS!!!movieds,
I think I prefer the loan from MMI instead of a pp. Heres why.
$19 million loan........
Cline will pay 6% per year interest = $1,140,000 x 2 years = $2,280,000 ttl interest
MMI has the option to convert $10,877,000 of this loan into 5,438,500 shares of Cline if they want...at $2/share. I figure they probably will since anything above $2/share is extra money for them. They may not convert until the end of the loan period in order to collect the approx 2.5 million interest...plus the SP may be the highest by then anyway.
So that equals 5,438,500 shares dilution.
The interest ($2.28 million)...when converted to shares...at todays SP ($2.35) = 970,213 shares.
So total dilution with converted shares and interest shares = 6,408,713 shares ttl dilution.
If a PP had been done for $19 million...say at $2 = 9,500,000 shares dilution...+ lets say 2 million warrants (???) so fully diluted = 11,500,000 shares dilution compared to 6,408,713...even with the interest figured in and converted to shares.
I think Ken did the best deal for shareholders...almost half the dilution.
Maybe someone can rip these calculation to shreds. Be my guest.
Badog