Post by
arh0070 on Oct 11, 2023 1:22pm
BNXA
Well bnxa has announced a capital raising .A convertible debenture paying 10% in cash as a dividend each year and convertible in 3 years to bnxa shares at 80 cents Canadian and additionally an equal number of warrants exercisable at 1$ Canadian for 3 years .This equals a dilution of 40% of the current outstanding shares of the company.The intent is to raise 6million Canadian,though by the sound of it only 1.25 million is pre sold to insiders.The intent is to pay off the debt which is paying 25% interest rates and for general corporate purposes.I am not sure if this will pay off all thier debt or not ,I guess this will be determined by the success of the offering .
Debt such as this would take priority in a bankrupcy over the common shares.Mr market has dropped the price by 5cents on a volume of 13,000 shares.
So bnxa remains on life support though it would appear that bankrupcy is avoided for now .How long will be determined by whether bnxa turns cash flow positive after paying interest on the debt .