Hi all. Yes, I am pleased to see the direction we are heading in, viz.
- consistent;
- objectives were clearly defined and are being met very rapidly, dare I say - professionally?
- plans and actions well publicized to shareholders
- some indications of ethical considerations (e.g. mgt will pay a premium to exercise warrants, as compared with third parties.
- 14 to19 million in new debt, less refinance 4 million in short term debt (due to Dr. K) equals 11 to 15 million in fresh cash; provided the issue is fully subscribed and the underwriters take up their allotment. we will not see these stock prices again, unless we are below water.
- I cannot make the numbers work, per the NR, re – “underwriters can take up 7.5 mill shares”. I calculate it at 4000 units times 1667 equals 6.668 mill shares at 45 cents, plus compensation warrants to buy 5.5 mill shares. That is a total of 12.168 mill shares.
There are those who may quibble with how low the financing conversion price is, but damit, how else can you raise 5% money? To all intents and purposes, it is unsecured.
The mortgage refinancing looks like a high fee/rate – but, any intelligent lender will not only want to see security well in excess of the loan, but, more importantly, a history showing the ability to generate cash flows, sufficient to service the debt repayment plus interest costs. This company does not have that. So, I commend the company on this refinancing.
By the way, could someone find out who the prior 24% mortgage holder was? I would not be surprised to see a connection to the Carribean. We need some juicy scandals to cheer us up. How about, was the Caribbean director Mrs. K's second cousin, once removed?
I would now assess the company as being capable of survival, provided the financing is completed successfully. Without a financing, we were bankrupt.
My greatest worry was that we would see a bottomless financing, i.e. where the debenture has conversion at a fixed principal amount. Then, the debenture holders could drive the stock price into the ground, then exercise their conversion rights and take control over the company. Wolf, please come home soon.
btw, Rthomasdmx has an excellent advice for DMX fans who had cashed out. See <http://www.stockhouse.com/bullboards/viewmessage.asp?no=8643082&t=0&all=0&TableID=0
Not sure if I know what I’m doing – did I paste that hot link correctly? previewed this - why am I getting bold underlined?? Fox. |
