Post by
Bever73 on Aug 18, 2020 12:09pm
Debentures or commons....
Whats the play here folks....time is running short.....
Comment by
BCmountainman on Aug 18, 2020 12:42pm
will tell you what the play is getb out lol
Comment by
johnale on Aug 18, 2020 2:27pm
36.5mil converts at 28.5 cents - 128mil shares 128/36.5 = 3.5068 for every 1 fire.db get 3.5 fire shares. 5840*3.5068 = 20480 fire shares. now considering you get 8% cash payment on those shares - makes sense to keep the debs and get that interest until you want to sell. I assume after the deal fire.db and fire should even out.
Comment by
BCmountainman on Aug 18, 2020 3:07pm
So let me get this straight, you want people to buy there debt instead of their shares so wht you are saying is that as long as this company does not make a cent and keeps going into debt thats ok with you right.
Comment by
Method on Aug 18, 2020 10:00pm
I'm happy to see all of this positive debenture talk. I also increased my position by a decent amount at 29. John, if you don't mind but what did you mean by "after the deal fire.db and fire should even out"?
Comment by
watchmeplz on Aug 19, 2020 4:01pm
Nice method. Can you join me in some other equities? lets make some money together and not get stuck on this bag.
Comment by
Method on Aug 19, 2020 5:42pm
What else do you own? Most of the stuff I own is hated as much as you hate this name.
Comment by
brentkosta on Aug 20, 2020 12:30pm
This post has been removed in accordance with Community Policy
Comment by
BCmountainman on Aug 20, 2020 12:42pm
MMCap + Greed+Profits= Crimmals
Comment by
johnale on Aug 20, 2020 12:50pm
So if I get this straight - 36.5 mil will accrete at 11.06%/yr and one will get a seperate debenture to show this amount. (Non cash) 36.5mil will also pay 8% cash - semi annually. Starting sept 1. the accreted portion will start being paid back in cash - but only after 3yrs from sept 1.
Comment by
Method on Aug 20, 2020 3:53pm
actually the accreted portion and the original $36.5m will be paid off in concert at 1% of the total amount ($500k/month or 1% as noted in the press release) for two years before the rest is due in 5 years, presuming they aren't converted to stock by then.
Comment by
Method on Aug 20, 2020 3:49pm
It is definitely complicated and the press release wasn't clear. There should be documents filed before its effective on SEDAR. The accretion amounts is compounded annually so calculate 36.5 * (1.1106^3) - 36.5 and you get the $13.5 accreted convert.
Comment by
brentkosta on Aug 19, 2020 11:52am
This post has been removed in accordance with Community Policy
Comment by
johnale on Aug 19, 2020 12:19pm
It's 8% of the face value. So buying at 31 - the effective interest rate (on the 36.5mil left) is 25.8%!!!