RE: $0.07 new all time low Today's share price has no relation to what the notes will convert at. As the price they convert at, if shareholders decide to approve them converting (Yes we get to vote on that), will be determined come September. I encourage everyone to read the part of the circulars discussing the modifications to the note indentures. It is in the stockholder one as well briefly, but they did a very good job of hiding it as much as possible and painting a doom and gloom vote yes now or else. It is more clear in the Debt holders circular. I went over this several times to be certain. Regardless of how we vote, if they approve the modifications, the maturity moves to Oct 5th. And hence the calculation period is in September. So right now, there is no risk to the interested parties who are trying to buy this as we have 4 and a half months after the vote to figure out a new deal, and allow the Waterpan/ Renova group to do their due diligence, and for Olma to come up with a new buyer. Further Anglo gold is not currently staring down any risk to their investment now or losing MWS, as are none of the other related parties. So there is no incentive to improve the offer until this first round is done. Also the funds also aren't looking at dilution now either at this low share price, so there is no need for them to step in and pick it up and thereby reduce dilution. So we languish.
I suspect today's sell off was capitulation from Arbitrage longs after the Globe article clued them into the fact that this deal is facing very long odds of going through at the moment if AGA and Gold One don't up their offers. With the lack of liquidity it's easy to move the stock.
The whole deal is 405m right now, and our entire market cap is under 20m right now. To buy every share in the company if they were available. After the debt converts even with the current low ball offers we will have 405-170= 235m Enterprise value.
Anyone realizing how this will work with the shares converting, come summer, will be very smart to start picking up as many shares as they can at these low prices and driving the sp higher come the calculation period, as any shares picked up under the conversion price will result in a massive winner relative to the remaining pie, when the debt is finally converted and removed.
For those who haven't looked at the circular. They actually calculated dilution at 1c, 2c ,3c, 4c 5c, 10c, and 15c. To try and scare us.
The fact that they actually put those numbers on the low end should tell you how scared they are and desperate to manipulate us. The fact they put in 1c should tell you how they will say anything to browbeat us into voting yes. At 1c that's a market cap of 2.37m to buy all of FIU. Us minority shareholders on this board could buy every share in the company at that price but a few hundred, then send the stock to 10 in theory resulting in the debt converting into a completely negligible amount of shares. All it would take is a month of no one selling while this is calculated. Then when the debt holders are left with practically no stake in the company we start trading again as normal. With the current low bid offers we are left with 235m value after, which works out to slightly over a dollar a share, and the debt holders are left with next to nothing. That's with the current low ball bids. If we got fair value, we could be worth several dollars. If the funds thought about this they could have a multi-times winner. If they each decided to buy another 10 percent say on top of the 17% they have now. Out of the public float of around 50%. 30% are not selling as they are related parties, and they already have 17%. So you don't need to worry about them. Plus this also benefits them, so they aren't likely to do anything.
Further, for those of you that haven't thought about it, that also changes a lot of things when it comes time to refinance the 2013 notes. As we just cut our debt in half more or less when these things convert. With assets worth so much more with recent bids, we should have no problem getting new debt financing.
So, don't worry. Vote no to the deals. And if it gets really low buy hand over fist. You can buy so many there won't be any more left and we can, come the calculation period, let this thing fly to the upside and when everyone considers what current shareholders have to gain by reducing dilution.
As long as you get the shares under or around the eventual conversion price you will win even with these low offers if it comes to that.