RE:RE:RE:RE:RE:RE:RE:SALP vs Retail cost NOT EQUALStockReddy wrote: For example if the prometic value is 300 millions, the debt is around 125 millions+recent private placements 75 millions (total 200 millions) and the existing share holders money is 100 millions (1/3 rd of it), right now they are counting as around 1 million value,
I think the number will be around 10 because they diluted to 30 times (so far 20B and later it will be around 30B).
If they want more money to run the company they can further dilute it but not collecting from the existing share holders, because they are already owned them (that is illegal).
That is why better they discus in AGM and take trhe share holders vote.
IMHO,
Reddy
Reddy every retail investor can probably all express what they think is a 'better' refinancing plan.
However, there is currently only one plan that has been carried out, which was annouced on April 15 and the first two parts of the plan (i.e. debt conversion and private replacement) closed on April 23. The last part of the plan is the rights offer which was stated in the April 15 PR to commence around May 22.
As the company had the TMX permission under the 'financial hardship' examption to
not holding a shareholder's meeting or vote on the refinancing plan, barring AMF or any other intervention, that is the ONLY plan that the existing investors need to consider for their investment decision.
Market valuation is the valuation determined by the market whenever the market is open. The value of the 736m shares (prior non-SALP equity) is currently valued at $29M (736 x 4 cents, May 14, 2019) not $100M, nor $1M.
After the rights offer, the total outstanding share estimated by Prometic in April 15 PR is 25B, not 30B. No one is forced to take part in the rights offer, just as no one is forced to invest in this company in the first place.
Finally, most (if not all) the company's statements/presentations/projections are forward-looking statements that investors consider or base their decision on at their own RISK. This is applicable to all public companies and not just Prometic.