RE:New Press Release - Invesque Inc. Announces Proposed Amendments to the Terms of its 8.75% Convertible Unsecured Subordinated Debentures Due September 30, 2026Wow. It looks like the company on the way to bankruptcy filing.
Conversion price cut in more than half to 1.10? You get high interest payment on the debentures and are the first to claim money if company goes bankrupt without converting. That cushion is valued at least 50% of the total investment, so I would say this stock is worth 0.55 max until 2026 which is 3 years down the road so need to factor in the discount. In that case, 44 cents per share is fairmarket value.
EBITDARM coverage ratio of less than 1 means company cannot meet its financial obligations and it has not improved a little with all those asset sales.
This is crazy, I am out now.
GLTA