Hi Jaime....
There is no Rover announcement to my knowledge, but we know that Rover is the customer because Don announced it on the last conference call.
As for the filing you noted, it is "old news" because all the major holders realized that the converts would end up being converted. My opinion is (and I think this is an odds-on bet), that the buyer of that preferred has been steadily selling common shares against his long-preferred position.
Benefits to him (it, actually!) is changing a non-income producing piece of paper for one that pays dividends...has some "downside protection" because of the dividend, and is obviously being offset at a more favorable price.
I think he (it!) is the only seller in the market, and that approximately 300,000 common have already been laid off in this fashion.
Unfortunately, the piece of paper that Simula sold may have benefitted the shareholders because it supplied the company needed equity, but the cost was great, and the type of paper it is hurt the common's price performance and undoubtedly will do so for some time yet. I personally believe that an investment banker could have struck a far better deal ASSUMING that there was sufficient time to arrange for one.
I am still of the view that the sale of Coach and Car will be completed this quarter, and that it will be "at least" at the current carrying cost...somewhere around the $10 million area.
Take care of yourself. |
