Tangelo Games Corp. IPRSF

Broker thinks no buyout

[willis888]

Speaking with my broker today,he thinks I am offside on my theory a buyout is coming.He says if they were in talks of an imminent takeover they wouldn't extend the maturity date or extend the warrants.He said the key item was the covenants being reworked.He aslo said to pay attention to the fact the warrants were extended.Whatever they are working on,TEC must think there is still money to be made on the warrants.Anyone else on theories of what is going on?At 0.035 and debt load,what is the way out?Rollback shares and then raise money?

[Bringtherain]

If you assume a $40MM run rate, and EBITDA of $4MM (higher than last reported) and a multiple of 10x EBITDA (very high) you get a valuation of $40MM.  Total debt is what $70 or $80MM? So...equity all under water. Why roll back under water equity?  Pointless exercise.  TEC owns this. Sell and take your loss to offset gains made on the best market we have had in ages.

[lscfa]

The debtholders need to stop loan-sharking the shareholders and grow a pair. If they converted their $88 mil in debt to shares at $0.10 there would be 1.1 billion shares o/s and the $10 mil in annual ebitda would be $10 million in net income for an eps of $0.01. The stock would easily be valued at a 15 p/e or $0.15 for a 50% upside for debtholders. Removing the interest payable would free up cash