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With the approval of the employee share purchase plan we should also expect to see an increase in liquidity and price support. I expect 22NW to relay the message to everyone at the company that it's all hands on deck and sacrifices will be needed. The next quarter release will not be good and I think the share price is already reflecting that with a market cap this low. Old board and ceo are finally gone! Balance sheet is not as bad as people like to point out in my opinion. We know that cash stands at ~49M CAD and lets not forget that the unsecured convertible debt representing the bulk of the long term debt is convertible at $4.65 & $4.25 at 1000$ CAD for ratios of 215 and 238 respectively. Which would result in 15.8M additional shares if converted I believe. Putting shares oustanding at 100M. Not that bad considering the hard assets and no inflated intangible for such a disruptive company.
The only way for Peter Briger/Noll and 22NW to exit this considering they own close to 1/3 of the company and 22NW regained control of the board is to turn this thing around fast or hire an IB /PE and take it private of get acquired. Briger was the principal at Fortress and also co-founded the special situation group at goldman sachs which was credited to be the main driver of revenue for decades. 22NW have been very successful at stock picking over the last years from what I see. There is also Mak one capital LLC involved. Big sharks like I said and failure is not an option. That 7M shares short on a stock this illiquid and with such high institutional ownership is a very ballzy move. If they are forced to cover it will cost them a lot and trigger a short squeeze.
This is only my opinion. GLTA
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