GREY:WONEF - Post by User
Comment by
RainMaker888on Jul 02, 2016 8:26am
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Post# 25016685
RE:RE:So what does this mean? Are we screwed or not?
RE:RE:So what does this mean? Are we screwed or not?
yes and no - they have the option to cash out at 1007 per 1000 invested. Some may opt out for the cash if they do not see the value in WEQ common shares - many probably will not take the shares given dilution means less value - so take the cash and move it elsewhere. Also, if the share price rises prior to the conversion, then obviously less shares will be generated. There is no doubt some will take the share option - but there are some negatives to that scenario for the debenture holders. It's a waiting game really - I presume 50-100 million new common shares will be issued, added to the 35 million already out there. That's not too bad, still a drag, but manageable. I'm holding to see the fall out - might buy more if we get back to 25 cents a share. They did lower the credit amount required from the bank - that's a good sign things are turning around.