RE:RE:RE:RE:RE:RE:VWAP $7.88 Day 7UserError wrote: Yes, but there’s also positive pressure due to the fact that $100 million in debt gets removed from their balance sheet. When OGI issued these debentures they would have done so at a premium conversion rate to the share price. At the same time, other LP’s were doing bought deals for equity at a discount to share price. This is one of the reasons why OGI is still undervalued. Their share count after this conversion is still far smaller than many of their peers.
There could be a small dip when they convert, but it could also go the other way. If OGI was overvalued on a comparable basis, then yes it would crash because everyone would expect Eigjt to liquidate. The fact is that they are still undervalued, so Eight should want to slowly exit their position over time to maximize the return.
Overall I think I agree. There is a bit of dilution and possible selling, but after this OGI should be in a position to move forward without the need for further financing on the debt or equity side. Unless there is a opportunity for additional major expantion beyond what is already planned. And by the time that happens they should be in a position to get traditional debt financing through a bank with their solid financials.
Overall I would say we are more likely to see a period of time when the SP trades in a range while 8capital disposes of whatever shares they plan to sell, then to see a drop. There are plenty of buyers out there to offset them selling.