2018 and 2020 debentures....
someone knows who ownes the debentures (how many big investors are involved?) ... last years news about the buyback says the company is allowed buying back up to 10% of the 2018 an 2020 debentures outstanding.
here the terms of the 2018 debebtures:
"On maturity, provided that no event of default shall have occurred and be continuing, the Company may, at its option, elect to satisfy its obligation to repay principal plus accrued and unpaid interest amounts (the “Outstanding Balance”) of the 2018 Debentures by issuing and delivering that number of common shares obtained by dividing the Outstanding Balance by US$0.13. However, should the volume-weighted average trading price of the Company’s common shares traded during the 20 consecutive trading days ending five trading days prior to August 11, 2018 be below US$0.13 per common share, 19% of the Outstanding Balance must be settled in cash and 81% of the Outstanding Balance may be settled, at the Company’s option, in cash or by issuing and delivering that number of common shares at US$0.13 per common share."
here the terms of the 2020 debentures:
"On maturity, the principal and any accrued interest outstanding on the 2020 Debentures will be settled in cash."
"Holders of the 2020 Debentures have the option to convert their 2020 Debentures into common shares of the Company at any time prior to the close of business on the Maturity Date. However, no 2020 Debenture may be exchanged or withdrawn from the Global Debenture Certificate on an Interest Payment Date or during the seven Business Days preceding an Interest Payment Date. If a 2020 Debenture is surrendered for exchange on an Interest Payment Date or during the seven Business Days preceding an Interest Payment Date, the Trustee will hold the conversion request for processing until the first Business Day following the Interest Payment Date."
"Can the Company repurchase the 2020 Debentures for cancellation prior to maturity?
Yes, the Company, at any time when it is not in default, may purchase any or all of the 2020 Debentures in the open market, by tender or by private contract, at any price (which, for greater certainty, may be below par) in compliance with any applicable securities regulations and stock exchange rules."
...the holders of the debentures will controll the company sooner or later... OR the company will find a strategic investor wich buys the debentures before matury or lend the company the cash for settelment of the debentures at matury date (Januar 2 2020) . Thats why the comany hired GMP for stratregic review... the company has 3 years time from now to find a solution..
i hope the cash balance will grow to 50 million$ +++ until late 2019... this would put the company in a good position settle the 2020 debentures half from cash , half from a new bank-debt -facility (or other source)......