Post by
WarrantOfficer on Nov 21, 2024 1:12pm
Convertable Senior Notes / Market panic by short sellers
Fairfax Financial Holdings (TSX:FFH) annouced a 700M senior note offering yesterday. Their stock is up $16.29 today. There is zero posts on that BB stating all heck is about to break lose.
SVM management is smart and courageous with a war chest larger than most silver producers in Canada. Currently their is zero debt. A debenture is just like a bond. You pay investing entities interest on their investment with the goods that you produce or thru the sales of the goods that you produce. Put a time on the bond and pay up at the end.
130M $ @ 6 .48 share = 20,061728 shares upon conversion, the notes may be settled at the Companys election in cash, common shares or a combination of both. Possibly zero dilution.
Consider there is 5 - 6 million oz of gold in Ecuador, with that resource still expanding. At current gold valuations this amounts to $18Billlion CAD in resource estimates. The copper adds significant value to this. Adding a possible 20 million shares to the current amount is peanuts.
IMO, anyone posting this is the end of the company at this juncture is merely a scare tactic. Consider your initial DD and what brought you here initially. This is a great time to add to a position. I did.
Comment by
skepticalme on Nov 21, 2024 2:24pm
Baloney. The cash hoard as well as the new debt will be spent ASAP. And as the stock plummets, a higher percentage of the company will be stripped from shareholders and given to the rich who will now own the company.