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Estrella International Energy Services Ltd. EENZD


Primary Symbol: EENZF



GREY:EENZF - Post by User

Comment by Thundersoleon Jun 17, 2013 5:01pm
133 Views
Post# 21534198

RE: RE: RE: Giant Acquistion

RE: RE: RE: Giant Acquistion

I don't think this is good news for the common shares.

Up to 1 for 100 share consolidation to be determined by the board of directors.

This all being financed with secured preferred shares and other secured loans, this means eventually the company can be reorganized (maybe by bankrutcy) and the common shares will be zero, as the secured loans and preferred shares are higher up on the ladder.

Not to mention that not many shares do well after a share consolidation.

The preferred shares are dilutive, especially if they can be converted to common shares.

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