Good question. For starters, not everybody is
Post# of 11106
Posted On: 06/25/2015 7:11:06 PM
Re: SpearOfDestiny #7553
Good question.
For starters, not everybody is getting CERTs. Only those PVEC share holders in March 2014 are eligible at this point. The folks making the decision get nothing. In fact they are the ones paying the biggest price.
What has been talked about thus far paints a very rosy picture for you and me and the rest of us longs who held shares at the time. However, it paints a very bleak picture for everyone else.
If I were on the BOD, I would want something that is equitable to all involved at this time. That includes the newbies and the DSUS team.
There in lies the rub. What is a face saving option that benefits everyone and still allows the CERTs to have some merit?
My only conclusion at this point is some sort of warrant, or, a rite to buy a certain number of shares at a discount price from the company directly that would be restricted for a 6 month term. The details of such an offering would have to be negotiated internally, but, I would suspect that the strike price would be somewhere between 1c and 3c and the exchange would be probably one CERT share for one warrant.
This would automatically reduce the number shares that would be redeemed and it would return some value to the company. For example, a 20M warrants at 2 cents is still $400k that can be added to the balance sheet for ops expansion. For us recipients, we would hold the right to watch what happens to the shares before we commit any more of our money to the cause.
Other options that they might consider is something far less than a 1:1 swap.
In the end, all we can do is wait and see what they decide.
For starters, not everybody is getting CERTs. Only those PVEC share holders in March 2014 are eligible at this point. The folks making the decision get nothing. In fact they are the ones paying the biggest price.
What has been talked about thus far paints a very rosy picture for you and me and the rest of us longs who held shares at the time. However, it paints a very bleak picture for everyone else.
If I were on the BOD, I would want something that is equitable to all involved at this time. That includes the newbies and the DSUS team.
There in lies the rub. What is a face saving option that benefits everyone and still allows the CERTs to have some merit?
My only conclusion at this point is some sort of warrant, or, a rite to buy a certain number of shares at a discount price from the company directly that would be restricted for a 6 month term. The details of such an offering would have to be negotiated internally, but, I would suspect that the strike price would be somewhere between 1c and 3c and the exchange would be probably one CERT share for one warrant.
This would automatically reduce the number shares that would be redeemed and it would return some value to the company. For example, a 20M warrants at 2 cents is still $400k that can be added to the balance sheet for ops expansion. For us recipients, we would hold the right to watch what happens to the shares before we commit any more of our money to the cause.
Other options that they might consider is something far less than a 1:1 swap.
In the end, all we can do is wait and see what they decide.
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