RE:RE:RE:RE:After R/S. Dilution Shareholders of MT received compensation ( according to the number of shares we owned ) when management decided to issue more shares ... it was done to compensate for the dilution, in the long run MT performed well and the market did well too so it was a win win all around ... I'm hoping for the same result here ... so far with Martel at the helm the decisions have been positive and so has been the performance... I'm hoping for much of yge same going forward... I still think this is worth $3 a share but I guess it doesn't matter until the market believes it too ... GLTA
quote=clubhouse19]Sham
There are surely negotiations and agreements behind the scenes that when the reverse split goes through that those institutions that may be buying will become the underwriters of any equity offers.
IMO that is the main reason that this reverse split is going through at 1 for 25 and as I stated before in some posts that equity offerings for the sole reason of reducing LTD would make complete sense.
Once the reverse split goes through and approved by regulators , you will have an equity offering underwritten by those same institutions shortly after and most likely at a hefty discount somewhere in the neighborhood of 10 % and that will be the sales pitch to those funds interested in buying.
Retail investors IMO should stay out until the details of that offering gets published and results of subscriptions are given.
All in my opinion of course.
That is where the money is made for the institutions by underwriting any equity offer going forward
Shamhorish wrote: CORRECTION
yes, it seems that while not declared, but this is the plan,,,Reverse split at a high count (25) then they expect insitiutions to start buying In bbd
then somewhere after RS and before next dept maturity BBD MAY issue a 200,000,000 (200 million) new shares at (depending on bbd market price at the time let us say C$30)
they will get 6,000,000,000 + or - enough to reduce debt to about 0.5 - 2.0 billions
and reduce interest deby payment by at least 400,000,000 (400 miilions / year
as number of B shares will be reduced to 243,000,000,000 / 25 = 972,000,0000 issueing 200,000,000 will bring total number of B shares too arround 1,200,000,000
during that time, a lttle befor or after, i beleive bbd will announce that they will start paying dividents and bbd.b share price will go up and stay up
[/quote]