RE:RE:RE:RE:RE:Really well done blog by large shareholder I don’t understand, if you mean $7/8 exercise price (can anyone confirm?) upside as busted I guess time will tell if you believe the library of 13,000+ 1/2 hours and growing is not worth this less debt I know the stock traded in the $10/11 range not that long ago, and since the demand for content as continued to increase.
I guess perhaps I am jaded or cynical but I have had far too many investments not realize their potential. Wildbrain is a show me story right now. I do not think they have credibility in the market, they have too much debt and everyone is scared of the great recession. I 100 percent agree the ingredients are there but I am far more comfortable with the debentures (without considering conversion).
1) I bought them at a discount to par and my YTM is 12 percent over 6 years.
2) i have a guaranteed out - the debentures get cashed out in Sep 2024.
3) there is the upside optionality of converting into common if they exceed 8 dollars per share. (but i am not holding my breath).
risks: the company implodes and I get nothing (same risk with common shares), they convert me to common shares on maturity because they do not have the cash to redeem them.