RE: RE: RE: RE: RE: New management great reply, thanks mike.
so youre right when the debentures come due they can be paid in either cash or shares based on managements decision. no vote is needed by the debentureholders or shareholders under this senario becasue its already built into the original debenture agreement. so heres how the math plays out...
| Curent Price | 0.24 | |
| Debenture value | 136.97 | |
| Shares Issued | 570.70 | |
| | | |
| | Current | After Conversion |
| Shares out | 237.88 | 808.58 |
| Price | 0.24 | 0.24 |
| | | |
| MarketCap | 57.09 | 194.06 |
| Debentures | 136.97 | - |
| Notes | 150.00 | 150.00 |
| Cash | 10.00 | 10.00 |
| Enterprise Value | 334.06 | 334.06 |
| | | |
| Ashanti shares | 47.58 | 47.58 |
| Total Shares | 237.88 | 808.58 |
| Ownership % | 20% | 6% |
so the real loser here is the current shareholders not the debt holders because guys like ashanti who previously owned 20% of profit, now only own 6%...do you still think this seems like a good way to go for ashanti?
As for a third party lending them the money... that would be an expensive way to go because a lender is going to look at their current profitability when determining an interest rate, which is total shit. it would make much more sense to borrow from ashanti if they are going to refinance