GREY:COLUF - Post by User
Comment by
naeden99on Apr 15, 2014 9:52pm
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Post# 22456222
RE:RE:RE:RE:The Hardest To Accept
RE:RE:RE:RE:The Hardest To Accept10 bn shares issued (which you are apparently fine with) diluted your holdings to nothing and then a roll-back (which is separate and has no impact on the value of your holdings) was done in order to keep the amount of shares outstanding managable in case this thing ever trades again.
How can you say they want it to fail? They just want their money back.
How would you like it if someone further down on the capital structure - say warrants - said, "hey, can you eliminate 70% of your shares so as to increase the value of my warrants?" You would say screw you warrant holders, I'm ahead of you in the capital structure, I want all the value of my shares. This is what Arias tried to do to the debt holders and Sandstorm, and they were well within their rights to say no.
Since no one was willing to put up equity or buy the company, as a last resort, they restructured the debt for equity. They would have much rather had the mine go to production and been repaid on schedule, but are now trying to make the best of a bad situation to get some of their money back. Unfortunately, there isn't enough value here to repay the debt, sandstorm and have anything left for the equity holders.