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Virtus Diversified Income & Convertible Fund V.ACV.P


Primary Symbol: ACV

Virtus Diversified Income & Convertible Fund (the Fund) is a diversified, closed-end management investment company. The Fund's investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in a diversified portfolio of convertible securities, income-producing equity securities and income-producing debt and other instruments of varying maturities, of which at least 50% of total managed assets are invested in convertibles. The Fund has the latitude to write covered call options on the stocks held in the equity portion. The Fund's investment advisor is Virtus Investment Advisers, Inc., and its investment subadvisor is Voya Investment Management Co. LLC.


NYSE:ACV - Post by User

Comment by Jameskempon Jan 01, 2020 12:15pm
132 Views
Post# 30508349

RE:RE:RE:RE:Book value is 0.37 per share

RE:RE:RE:RE:Book value is 0.37 per shareFirstly this is a terrible deal:

The Debt Restructuring is being arranged by the two principal non-senior lenders, Primary Capital and MillRoad Capital. Under the Debt Restructuring, both principal lenders have agreed to extend their debt terms by 12 months, amend the coupon rate to 12% per annum, and accrue all interest in lieu of payment in the 12-month extension period. Primary Capital has also been extended the right to convert a portion of its loan into equity on the same terms as the Private Placement. MillRoad will receive a monthly extension fee, starting in mid-February 2020, of $10,000 per month, which will increase to $20,000 per month after six months. Primary Capital will receive a similar extension fee with a structure commensurate with the amount of their unpaid and unconverted debt.

payments have to be made every month and all they are essentially doing is pushing the debt down the road with accrued interest (NOT GOOD)
So they will be in the same spot owing a ton this time next year. 

Then lets say the company starts actually turning a profit well there are 50 million shares at .10 A LOT of these shares will be sold if this even gets to .15 a that is a 50 percent gain.. so how you think this gets above .20 anytime soon is beyond reason. 

The sales and revenue will not matter with a 50 million handcuff at .10. 

The only way your price perdiction is correct is if insider's buy the PP or a close group who will not sell for a while but i have no info on this one that is the case...



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