Surge Energy Inc (Alberta) T.SGY

44.5 M debs. due Dec2022

[pennydredful]

This   new  raise  gives  them optionality  to  pay  off  the  5.75% debentures of 44.5M  due  in a year  as it allowed  them  to  pay  off  bank  debt  below this required amount.

[Chris007]

LOL...atleast we don't need to worry about dilution from deb holders converting to equity. Conversion price of $2.75, pre-consolidation is now approx.$23.38, post-reverse split.

[pennydredful]

Who  knows  ?  If  the  stock  is   $12  in  a year  like the  Ray J. forecast , Paul  may  elect to pay the bonds  with shares at  a  5%  discount  to  the market , if he sees a better use for the cash. 

[Chris007]

Lets hope he doesn't decide to pay the deb holders in shares...

[Baystboy07]

What we have to worry about is that this is rolled over to a new convertible with worse terms so it potentially dilutes us anyway....management should just call this bond as soon as they can with the excess cash flow we are generating now....it would be stupid to do anything else before getting rid of this debt first.

[fortunefavorsus]

Even the Business Development loan interest rate goes up to 8% at end of term.  So the new loan will have not much impact on results but has a HUGE impact of freeing up the company from financial funding issues for the next five years!  With the improved cash flow in 2022 the company is way undervalued to competitors.  Should have popped up more Friday but next year is the big gains