olapril: I doubt Canaccord will go through with it after seeing the books.
Ron Reece: Anyone here willing to venture a prediction that Canaccord is putting the screws to Cowpland before consumating their financing agreement
mike assad: My guess is that Canaccord is waiting for some numbers on this quarter to see if there is still life in this company. If Canaccord bails then my guess is that the numbers are ugly and Corel will be finished or bought out. If they get bought out, Cowpland still stands to make a few bucks from his shares so he still doesn't lose.
Picanoc: The dilution is as I recall an additional 25%.
I have to wonder if Canaccord is not now putting the screws to Corel management
(half a warrant for each share purchase; so 50% more shares *may* be issued - if the market value is above $C4.56, one can presume they would be, otherwise not. I posted earlier on the huge value that Cannacord received here -- options premium ain't cheap, and they were just given a whole big bunch of it!)
Guys, keep in mind that we're talking a toxic equity deal here, not some sort of investment. These are structured to be virtually fail-safe for the "investors" (sometimes at a large cost to the existing shareholders). If you'll pardon a coarse analogy, it's not an engagement, it's not a date, it's perhaps even more detached and less respectful than a one night stand. Think more along the lines of professional services...
Cannacord won't bail, if there is anything they can possibly do about it. There's just too much money to be made by going ahead, and very little risk for them.
I've followed many toxic deals, and this is one of the more aggressive and dangerous ones I've seen. Pricing was done over a four day period (20 is more typical), and closing (registration of shares -- what they are currently waiting for) is (trying to be) much faster than usual (in the U.S. it usually takes 90 days to six months for the "investors" to flip out). Also, the "sweetener" freebie warrants were very generous, at 50% the number of underlying shares (10% is virtually standard here).
- Daniel |
