RE:SALP vs Retail cost NOT EQUALrankininlet wrote: I just did a quick napkin calculation. SALP got ~80% of company pre rights if I remember right. Since retail would own 20% post rights SALP would own 64% post. SALP gets 64%of company for120 million. Retail gets 20% of company for 75 million. This means SALP gets 3.25 shares more buying power than Retail. Restated, Retail pays a buck for a share unit ans SALP pays .307 for same thus actual SALP pricing is discounted 69.3%. This confirms what a poster said which is the PLI line that retail getting same deal as SALP at .015x. Retail paying original investment plus .015x while SALP participation is discounted by 69.7%. Phvkkers. Lies, lies, and more lies. My numbers might be off a bit, however, the theme raised by a previous poster is correct as RETAIL IS PAYING 3X what SALP is paying on a per share basis, not equal pricing as per PLI press releases.
rankininlet the refinancing includes the debt conversion of $239M as well as the $75M private placement and up to another $75M in the rights offer, all at the transaction price of 1.1521 cents. The title of your post is correct that SALP and retailers cost being not equal.
The reason for this apparent inequality is because SALP, while owning 3.3% equity prior to the refinancing, were also
the creditor of the company (i.e. Prometic
owe SALP money) and retail investors are
not creditors.
Therefore, SALP's post-refinancing equity position is largely due to the debt conversion, all at 1.1521 cents.
I understand that most (if not all) retailers, myself included, view the terms of the plan (e.g. the timing/amout of the debt converted, the transaction price, the circumstances leading to the need for refinancing plan=financial hardship; the validity of the 'financial hardship' etc) highly questionable or possibly illegal (i.e. breaking the security laws). However, this is a civil/lawful society where people (or instituations) are presumed innocent till they are proven guilty. Whether or not the refinancing plan is breaking the laws will be decided by the AMF or other applicable authorities, or in a court, if there is a lawsuit.