Post by
flight100 on Nov 03, 2020 11:20am
Concern about KNR Debenture!
I was wondering why the KNR didn't raise fund at $5 to get rid of the debenture. It would have diluted the outstanding shares by 1.2 million shares and got ride of the debenture. I am sure that they could do it easily.
Unless we have a very positive news, the debenture issue will affect the stock price until Dec. 15th.
Comment by
SPLENDID12 on Nov 03, 2020 11:39am
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Comment by
HTNYC1 on Nov 03, 2020 11:40am
The debt is tiny and won't impact the stock except in a positive way because of the favorable extension terms showing confidence. The stock is fully diluted so would only be via a share sale by the CEO which would be ludicrous based on where they are about to go.
Comment by
canyousayiii on Nov 03, 2020 11:48am
If my understanding is correct, debenture holders get 58,000 shares in addition to 8% interest, which is tax deductible to the corporation. Equivalent funding in equity at $5 would be 1,160,000 shares. The current deal is clearly much less dilutionary and servicing the debt should not be a challenge if we land even 1,000 units in a year!
Comment by
Mazz45 on Nov 03, 2020 1:26pm
IMO likely because with all the news coming out between now and Dec 15, management is confident they can close out the debenture with either cash or a much higher stock price for less dilution. Yet another bread crumb or no point kicking the can down the road by 45 days.
Comment by
BCdude on Nov 03, 2020 2:52pm
Why raise money at $5 per share if you don't reaelly need it for cash flow purposes, and when you might be able to raise it for $20+ in a couple of months? Management doesn't care about stock price between now and Dec 15th.