Slate Office REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.SOT.DB

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Par for the course...

[HRc60to65]

GA is holding 80M$ in units and 18M$ in debentures.  That is 100M$ invested in SOT.

GA will not accepted to loss that 100M$.

The default doesn't permit to SOT to borrow more money.

GA do not want to sell properties.

A potential Recapitalization Plan (My dream)
New equity shall be 160M$ + the conversion of all of the REIT’s convertible debentures and accrued interest into equity (6.8M preferred shares 6.5% to 8% cumulative div. or units).  A reverse split 10:1 to 20:1 will happened, to bring the unit price to 4$ to 8$.   Warrants issued to buy 160M$ of units and GA  will exercised and unexercised warrants. Lenders will accepted to modify convenants and loans conditions.

At 5:1. it is 17.2M units + 80M new units + 6.8M preferred shares for debenture = 97.2M units
At 10:1, it is 8.6M units + 40M new units + 43M units for debentures = 92M units
At 20:1, it is 4.3M units + 20M new units + 21M units for debentures = 46M units

That is 320M$ new equity and GA get a big chunk of the equity.

From Q3-2024 financial:

The potential Recapitalization Plan may involve, among other things, amendments to the REIT’s existing secured indebtedness (including amendments to covenants and extensions of maturities, among other potential amendments), conversion of all or a portion of the REIT’s convertible debentures into equity, additional subscriptions for units, additional interim secured funding and/or a potential rights offering to raise additional equity capital.   New equity can be preferred shares.