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Posted On: 02/20/2020 1:58:28 PM
Post# of 36542
I have to wonder why Generex didn't file the necessary paperwork... was there already a dispute, or was it simply a screw up?
The implied price for this 11MM shares is pretty low, the way I figure it, so maybe the impact is overstated, assuming the price goes up and not down.
I'm not sure we have the info to know how the original 12% is figured. But if 12% made a $2MM note worth $2.2MM, let's assume the penalty rate of 22% makes the note worth $2.5MM.
$2.5MM/11MM shares is $0.2273/share.
Add back the $0.05 deduction from the terms = $0.2773/share.
Factor out the 80% penalty = $0.2773/share divided by 80% = $0.3466/share.
It looks like we were trading at $0.61 the day of the deal.
So $0.61x.95 less .05 = 0.5295 into $2.2MM = 4.15MM shares would have been the "best" price of this deal if that were the 5 day average.
The implied price for this 11MM shares is pretty low, the way I figure it, so maybe the impact is overstated, assuming the price goes up and not down.
I'm not sure we have the info to know how the original 12% is figured. But if 12% made a $2MM note worth $2.2MM, let's assume the penalty rate of 22% makes the note worth $2.5MM.
$2.5MM/11MM shares is $0.2273/share.
Add back the $0.05 deduction from the terms = $0.2773/share.
Factor out the 80% penalty = $0.2773/share divided by 80% = $0.3466/share.
It looks like we were trading at $0.61 the day of the deal.
So $0.61x.95 less .05 = 0.5295 into $2.2MM = 4.15MM shares would have been the "best" price of this deal if that were the 5 day average.
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