RE: 16 cent valuation? Based on the 2.6 million shares after conversion and an initial conversion price for the unsecured exchangable debentures of 21.95$, the deal gives a value of 57.07 million dollars for all outstanding common shares.
If you divide the 57 million dollars by the 520 million outstanding shares it give you a value of 11 cents a share. Great upside if you just happened to only buy shares since april of this year. But for the rest of the owners of common shares they are getting royally bent over for lack of a more politically correct way of putting things.
What a board of directors and management. March 31, 2012 consolidated interim finanicial statements places the share holders capital to be 3,554,715,000 dollars for the outstanding 520 million shares. Which common shareholders myself included are being offered 67 million dollars for this capital.
I am curious to note where fairness comes into play when common share holders get 1.6 cents on the dollar while bond holders get 50 cents on the dollar by reducing their debt in half with this deal.