RE:RE:What about the $4.5 million in Convertible due September? With the new prospectus, trying to sell or issue US$100 million (CA$127 million) in securities at 2-3 cents is insane.
To make any deal more attractive to investors or debenture holders or whoever, I think Rosen has no choice but to do a share consolidation/reverse split and pop this back up to .80 cents to a dollar
This also may delay the deal with Day One or maybe not... They can always issue theirs at .03 cents get the deal done and after that dilution they would consolidate...then of course more dilution of hundreds of millions of shares but at a higher price.
JMO
Serious longs here shouldn't be too concerned right now Paul is long with us!
theTransporter wrote: There are two ways out of this:
1) A private placement for $5 Million is conducted. Most likely it will be at maximum $0.05, often include a half or full warrant at $0.07, and some broker will charge a fee for this raise. There will be immediate dilusion but the debenture debt will be settled.
2) Make an offer to the debenture holders to revise the conversion price and interest base value of their debentures down to $0.05 in exchange for another one or two years on the maturity date. No warrants necessary, and no brokerage fee to be paid. Many debenture holders will be compelled to hold at this revised valuation thus only immediate dilusion will be from those who immediately convert.
I would prefer option 2 as its less costly to the company and easier to do than option 1.
There is an option 3 however am confident it will never be a reality between now and September and that is the share price trades at or above $0.15 for 10 consecutive trading days which will force a conversion of the debentures.