RE:Shares outstanding as of 1 February RandomGuy25 - (1/31/2022 3:06:16 PM)
Shares outstanding as of 1 February
Should be at least ~412m shares.
Anyone have a different figure based on real math?
Happy to show my work if anyone is interested.
And from the circular:
As of the record date, 405,179,307 Common Shares are issued and outstanding as fully paid and non-assessable and no special shares are issued and outstanding.
Off by 7m.
Implications:
1. No cashflow from operations in order to cover any payments to the lenders.
2. Either the ATM or equity payment approach was use with the Noteholders.
3. No special agreement (undisclosed) was reached with the Noteholders.
The circular does not include any special conclusion. So the dilution will continue around this pricing until conditions change materially.
No in the circular on Adjusted EBITDA. High probability of the Adjusted EBITDA default being announced just after the March meeting. I covered the implications of this default previously.
Interestingly, a default on the Secured Note would actually reduce dilution. The Secured Noteholder would receive all the restricted cash, that would reduce the note, and Sundial would receive Atholville. So all the Zenabis assets would go to Sundial, but Hexo would have just under $100m less in debt.