OTCPK:RKNLF - Post by User
Post by
factRbeston Dec 23, 2016 10:35am
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Post# 25639712
Explain to me
Explain to meor yourself
How a company
-does a private placement that wipes out the debt.
-Regains convenants.
-Becomes cash flow positive with this cash injection.
Has its share value reduced by 25%.
To me there is only one answer.
The market views the existing shares as second class.
Bascially they hold the book value and the debt value of the company and the result goes to the new class of shares.
As an example and assuming the exercise period is the same.
ESW has a controlling interest in the company by way of the warrants without having to pay a dime.