Posted On: 05/04/2016 10:40:31 AM
Post# of 89362
$PNOW is now venturing to complete its fourth and final payment in its Debt Repurchase Program (part of the Debt Reduction initiative launched in 2015). With this payment, the company would have made an unbelievable achievement since Melvin Pereira took over as CEO.
The Company will have eliminated nearly 100% of the perceived toxic convertible debt held by the 14 debtholders targeted by the debt repurchase program, while raising enough long-term capital to both accomplish this task while expanding its operations.
According to company blogs and press releases, this achievement ultimately translates into:
• Millions of Dollars in derivative liability eliminated from the books
• Billions of shares in possible dilution eliminated from the cap table
• A significantly less required increase to the authorized share count in order to adhere to its contractual obligations
What is most important is this…. the huge potential upside of a company that actually has cash to operate with rapidly decreasing liabilities. This is a company that at one point had upwards of $12M in liabilities. Now the company is down around $5M. The evidence of extremely slowed and limited dilution has been very visible over the last quarter. And now with the Company making its last and final payment, solidifies that the worse of the past several years is over. Melvin Pereira has really turned the Company around from this perspective; which doesn’t stop here.
The Company will have eliminated nearly 100% of the perceived toxic convertible debt held by the 14 debtholders targeted by the debt repurchase program, while raising enough long-term capital to both accomplish this task while expanding its operations.
According to company blogs and press releases, this achievement ultimately translates into:
• Millions of Dollars in derivative liability eliminated from the books
• Billions of shares in possible dilution eliminated from the cap table
• A significantly less required increase to the authorized share count in order to adhere to its contractual obligations
What is most important is this…. the huge potential upside of a company that actually has cash to operate with rapidly decreasing liabilities. This is a company that at one point had upwards of $12M in liabilities. Now the company is down around $5M. The evidence of extremely slowed and limited dilution has been very visible over the last quarter. And now with the Company making its last and final payment, solidifies that the worse of the past several years is over. Melvin Pereira has really turned the Company around from this perspective; which doesn’t stop here.
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