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First Uranium Corporation T.FIU



TSX:FIU - Post by User

Comment by AIGswapon May 11, 2012 8:45am
110 Views
Post# 19898371

RE: Debenture Holder Comment

RE: Debenture Holder Comment

Franco Nevada and West Face own over 40% of the converts.  After conversion, these two parties will control the company.  I assume after the debt for equity swap, these parties will vote through the AGA and GDO deals to get their principal back + accrued interest.  Current shareholders will own a small sliver of the equity (<10%) and therefore will have no effect on the vote (Olma & Co will have <2%).  In this scenario, debt holders will most likely get back 100 cents on the dollar, but current stockholders will probably fair worse than the current deal due to the massive dilution.  .  Those are my thoughts.  Cheers,

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