RE:RE:Three thoughts on the rights offerjames700 wrote:
CCABBOTT888 The one BIG thing you are missing is that the current shareholders equity will be reduced to 3% from 100%. Yes, you can participate but only 1/3 of your shares will qualify because of the $75M cap. That pool off shares will only have 20% of the equity. Thomvest and friends will reverse split in June and flip the company to a waiting deal, walking away with 80% of the profits...
james700 I understand your point, which I already articulated in
my seeking alpha article on April 17 However, the equity value of the current 736M share holders is already mostly wiped out on April 23 when the private placement and $239M debt conversion to equity, not 'will be reduced' as you stated. It's ALREADY done!
Your understanding of the rights offer (only 1/3 of your shares will qualify) is
INCORRECT. Please refer to my
previous reply to your post here Barring AMF intervention (which is yet to be seen), the refinancing plan has already taken place and the equity structure of this company has already re-structured.