EXPM:HRTFF - Post by User
Comment by
cynic7206on Oct 11, 2021 9:39am
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Post# 33994783
RE:RE:RE:What is the pecking order!
RE:RE:RE:What is the pecking order!My thoughts are the odds of creditors driving this into bankruptcy are remote. The value of mine and property significantly exceeds the value of the total debt. As now that is about $117m in loans and $26 million in financial derivaties.
They are in a the middle of a sale. If the sale happens all the loans would likely to converted to stock due ot the change of control clause. That is the bad part for the retail investor.
Currently there are about 1.046 billion shares O/S. Converting the $117 million in loans at current market prices would generate around another 2.1 billion for a total of around 3.2 billion shares. I am assuming the $26 million gold loan does not convert to shares and that obiligation is picked up by a buyer.
With 3.2 billion shares outstanding - a final selling price per share will be less then I had hoped earlier. But the longer this drags on the more shares that will generated. Interest onthe loans would be around $1.8 million a month.