RE:Another 8% Drop this Morning???
Simple...... the debenture notice will issue shares at 95% of the 20 day average prior to 5th trading day preceding the due date. Hence: (1) the market is anticipating a significant dilution due to shares issue and (2) it is in the best interest of the debtholders to drive down the price, which also results in higher dilution. Certainly stupid of management at this point, especially when they just raised $200 million in financing. Why not redeem the debt paying $25 million in cash? It will in fact increase the SP. As I understand it, most of this debt is held my management/Board, including Gamba, hence they will gain the most. A conflict of interest? Legalized extortion.