Disappointing, but at least if it is HIMR selling
Post# of 17862
The obligations to C holders of course matter, but those obligations occur in a context that includes agreed upon rights of HIMR - specifically, that HIMR has the right to adjust the conversion rate at its discretion and the right to buy back the C shares at $2 per share at its discretion. Also, I would submit that with a finalized concession, C conversions become so dramatically unfair to holders of common stock, that HIMR incurs an obligation to exercise its agreed upon rights. This would not in any way constitute disrespect to the C holders, but merely a kind of self-respect to HIMR and its common shareholders interest.
There is no risk at all of C holders being "left with nothing". The C shares worth a redemption value of 1.4m are the settlement of an agreed upon debt of $900K as part of the restructuring in early 2012. And so, any path forward that respect the redemption value involves generous interest and payment of that agreed upon debt. Also, the C shares already converted constitute substantial additional interest on that debt. Further, the Tiger-Lynk owners hold substantial debt of HIMR that isn't convertible to common, but probably plays a role in how the Tiger-Lynk owners eventual royalty of revenue will be figured. The patents for Tiger-Lynk expire in 2019, but a good royalty agreement with a thriving HIMR will enable them to profit long after.
I don't think any shareholders want the Tiger-Lynk owners treated unfairly, we all just want the era of dilution for HIMR to end. It has gone on long enough.