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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by markvrdon Dec 14, 2011 10:24pm
238 Views
Post# 19323809

RE: RE: RE: RE: RE: RE: RE: markvrd - logical choi

RE: RE: RE: RE: RE: RE: RE: markvrd - logical choiWell there will be significant dillution of the commons if they convert.   That may drive the commons down in theory.   However, the common SP is probably running artificially low right now and maybe by March, it will be higher anyway.   I tend to think that even with dillution due to the series A conversion, the common share price will remain well above 11 cents.   This is what I mean about the short term arbitrage opportunity.

To my knowledge. there is no PR saying they will definitely convert.   However, they did also state that they will not let things get as far as $25 shareholder initiated retractions in Dec 2012.  They said this when they presented Q3 financials.   This means the company will convert but may possibly give shareholders the option to trade in the series A for a new pref series with dates that go beyond end of 2012.  Since any exchange of prefs for a new issue would need to be voluntary, series A holders do, pretty much guaranteed, have the option of going down the common share conversion path if they so choose.
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