Food for thought.
If you take the time to read the almost incomprehensible reg-s filing, it seems to me that the holders of the sub C's have no downside. They can convert at a maximum price of 19.50 anytime they want, and should the stock do well they'll make a killing. If the stock drops, they get enough stock from the company to get their money back. This, of course, thins out the existing common shareholders, and ads more downside risk. In the meantime, if they (the holders of the sub C's) want to leverage their hedge to increase the cash flow, they will short the stock so they can use your money to pay for (part/most/all) of their investment.
Hopefully, that's not what the management agreed to, as it is not shareholder friendly. It doesn't look like anybody was supposed to understand the paperwok, and I'm not completely convinced that I do. But I know one thing for sure, if someone offered me a deal like that, I'd probably take it (all).
Other interpretations are welcome.
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