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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by meetoo1600on Jan 19, 2018 8:06am
149 Views
Post# 27392129

RE:If the restructuring deal fails....and dilution question

RE:If the restructuring deal fails....and dilution questionYes, you will own a smaller piece of the company, but it will be a more valuable company.  If the value of the company increases disproportionately to the amount you piece shrinks, you will be better off as a result.  Anyone following this board, knows that  am guessing/gambling that this will happen in some measure.  The is a wide range of possibilities when it comes to how much, or even if at all.  I would call my approach an educated guess or an informed gamble, although rad10 thinks that I am a fool, which is fine.  Maybe I am one.  Time will tell.

As to the precise number of shares that people will own post-restructuring, it may be the same, or it may differ.  That wll depend on whether or not they issue new shares of the same class in exchange for the cancelled debt. If so, you will have the same number of shares.  An alternative is to cancel all existing shares and exchange them for shares in a whole new class, in which case the precise number of shares owned will likely change.  There would be no reason for doing that unless there was a perceived reason for changing the overall number of shares outstanding.  One such reason might be to keep the share price above the Nasdaq bid minimum of US$1.00.


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