Post by
Tothemoon2 on Mar 12, 2021 9:32am
Hate to talk against my book
As of the closing price before the announcement, the conversion price is 22% above the close on the 10th. Which holder here was only expecting a 22% gain over the next 5 years? So if the prospects are only that it's time to sell and move on. If we think the stock can double or triple from here then this is just a blatant give away to the friends and family who will be provided the opportunity to buy the bonds. Is it and end all be all no but it is the shadiest thing I've seen them do in the last couple years. Should of been just a straight up bond.
Comment by
waiting73 on Mar 12, 2021 11:13am
I thought the conversion was at Ivanhoe's discretion - so if they want, they can pay back in cash rather than use the stock conversion? What did I miss?
Comment by
BSdetector2016 on Mar 12, 2021 11:16am
You missed nothing at all. SP over-reaction was manufactured for/by the institutions.
Comment by
WpgJetsfan on Mar 12, 2021 11:42am
I could not agree more! I am sure that this agreement was known by a few.
Comment by
Tothemoon2 on Mar 12, 2021 11:28am
It is at the bond holders discretion not Ivanhoes. LIke I said its a small win or unlimited win for the hand picked bond holders. Not a company killer by no means but almost certain dilution.
Comment by
BSdetector2016 on Mar 12, 2021 11:44am
If it goes the dilution route (with no benefit ascribed for having the $575M cash) then we are looking at 6%. If it gets the projects closer to the finish line then I'm all in. We should be aware that this is still at least a $10 stock short term, and possibly $20 or more longer term. The only dummies crying are the ones who threw away their shares yesterday.