Posted On: 10/26/2015 4:05:22 PM
Post# of 30066
Re: Finalstretch63 #21079
For what it's worth, here is my understanding.
We sold Series H preferred stock and 12% convertible notes ("New Notes" ) totaling around $6.1 million to Magna and exchanged existing debt with Dominion for New Notes totaling around $3 million.
So Magna and Dominion hold around $9.1 million worth of Series H preferred stock and New Notes. These convert at the lower of (i) $2.50 and (ii) 75% of the lowest volume weighted average price during the fifteen (15) Trading Days immediately prior to the date of conversion.
So how much of the company will Magna and Dominion own? All depends on the stock price. If it stays down here, they will own 3/4 of the company before it is all over.
If GC can pull off a DX strategic transaction or we get large government funding for ESS, the stock price could rise and the amount that Magna and Dominion will receive will be lessened.
In my mind, EVERYTHING hinges on GC pulling off one of these two things ... and fast ... or having someone provide financing at better terms.
And if we can get substantially above $2, maybe there will be warrant exercises to bring in additional funds.
We sold Series H preferred stock and 12% convertible notes ("New Notes" ) totaling around $6.1 million to Magna and exchanged existing debt with Dominion for New Notes totaling around $3 million.
So Magna and Dominion hold around $9.1 million worth of Series H preferred stock and New Notes. These convert at the lower of (i) $2.50 and (ii) 75% of the lowest volume weighted average price during the fifteen (15) Trading Days immediately prior to the date of conversion.
So how much of the company will Magna and Dominion own? All depends on the stock price. If it stays down here, they will own 3/4 of the company before it is all over.
If GC can pull off a DX strategic transaction or we get large government funding for ESS, the stock price could rise and the amount that Magna and Dominion will receive will be lessened.
In my mind, EVERYTHING hinges on GC pulling off one of these two things ... and fast ... or having someone provide financing at better terms.
And if we can get substantially above $2, maybe there will be warrant exercises to bring in additional funds.
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