Post by
mrmoribund on Apr 11, 2021 10:08am
Further comment on debenture plan
I said earlier that the only reason why non-debenture-owning shareholders might rationally support the debenture change was if the company were in financial distress.
To be fair to management, there is another (though related) reason why they might support it and that is that if they don't support it the company will subsequently just do another highly dilutive share offering--just like they did in November-December 2020. This could end up being even more dilutive if it ended up being heavily discounted (which it probably would be).
If debentureholders are prohibited (by the Exchange) from voting their common shares on the debenture plan (which they should be), I suspect the company will make exactly this argument.
And if Baylin were to do this dilutive share offering, who would likely end up buying most of the new shares? Probably Jeffrey Royer, the same gentleman who would have been converting his debentures.
Now maybe Baylin will end up doing the dilutive share offering anyways because the debenture conversion would not raise new money, though it would improve Baylin's balance sheet.
Either way, if I were considering buying Baylin shares I would wait until we get more clarity as to which dilutive path the company is going to go down.
Comment by
ciretaka198 on Apr 11, 2021 5:20pm
I would rather go for an equity raise than this. I don't agree that royer would buy most of it because the last one he bought one fifth of it. So he lost position in this corp. At least percentage wise. Besides there is jno need to do a raise at this time as I am quite certain all the warramts were cashed in even thou baylin dos n't want to talk about it.
Comment by
BIGMOE on Apr 11, 2021 10:25pm
Baylin Technologies Announces Acceleration of Warrant Expiry Date? What is the status or no news release on this? Why?