OTCPK:KATFF - Post by User
Post by
Katangaon Jun 13, 2019 12:44pm
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Post# 29822929
debt for equity, dilution and reverse stocksplit
debt for equity, dilution and reverse stocksplitI guess the what will happen is that they issue something like 12b shares to wipe out the debt and then do a 15:1 reverse stocksplit. That allows Glencore to take money through dividends tax free (instead of interest payments that are taxed). So now we have a company with no debt, 1B shares outstanding.
Someone can run the actual numbers/scenario, but I am not so sure if this is a bad thing, sure we get reduced to 1/15 our shares, but now minimal debt and interest. Market cap can be more like 3B and our shares are worth $2.00 - $3.00. 250M a year for dividends. so like $.10 per share.
And room to grow.....thoughts?