For Debenture HoldersI did an excel spreadsheet looking at the 2 options...of interest the proposed is a very good deal up to .21 value for Zaio shares (forgetting about time value of moneyh/opporutnity cost)
Using $1000 increments - proposed deal would give 10833 shares which equates to .092 per share average cost.
Current deal is 8333 shares .125 and then $1250 more cash to buy another 8333 shares at .15.
Average cost is .135 a share but you would have 5833 more shares than the proposed.
From there it is a simple excel table showing end profit. For example at .15 the profit on the current deal would be $249.90 = +11.1% (remember 13.5 a share)
The proposes would have a profit of $625 = to plus 62.5%
Once you hit .22 the current debenture deal earns $1416.52 pn the $2250 invested = to +63% return. The proposed new deal earns $1383 on $1000 capital for a 138% gain . (keep in mind you have your $1250 that you didnt need to come up and you could buy shares at .125 and be way ahead.
Once the did the excel, the numbers and the leverage look great and i will be voting my lil 25K - block to say yes to the proposal. I attached my excel but not sure if it will show properly
| | | $ 2,250.00 | $0.135 | 16666 | | | | $1,000 | $ 0.092 | 10833 |
| | | | | | | | | | | |
| % Gain | $ Gain | Proceeds | Price | Shares | | % Gain | $ Gain | Proceeds | Price | Shares |
| 11.1% | $ 249.90 | $ 2,499.90 | 0.15 | 16666 | | 62.5% | $625 | 1624.95 | 0.15 | 10833 |
| 18.5% | $ 416.56 | $ 2,666.56 | 0.16 | 16666 | | 73.3% | $733 | 1733.28 | 0.16 | 10833 |
| 25.9% | $ 583.22 | $ 2,833.22 | 0.17 | 16666 | | 84.2% | $842 | 1841.61 | 0.17 | 10833 |
| 33.3% | $ 749.88 | $ 2,999.88 | 0.18 | 16666 | | 95.0% | $950 | 1949.94 | 0.18 | 10833 |
| 40.7% | $ 916.54 | $ 3,166.54 | 0.19 | 16666 | | 105.8% | $1,058 | 2058.27 | 0.19 | 10833 |
| 48.1% | $ 1,083.20 | $ 3,333.20 | 0.2 | 16666 | | 116.7% | $1,167 | 2166.6 | 0.2 | 10833 |
| 56% | $ 1,249.86 | $ 3,499.86 | 0.21 | 16666 | | | $1,275 | 2274.93 | 0.21 | 10833 |
| 63% | $ 1,416.52 | $ 3,666.52 | 0.22 | 16666 | | | $1,383 | 2383.26 | 0.22 | 10833 |