There are two ways to look at it imo, one good, one bad obviously:
Good:
MMEX has said that one of the purposes for the crownbridge arrangement is to pay down notes. If they need funding at the moment, they can either make a put to crownbridge or take a note. The crownbridge shares are immediately liquid in the market, where the note has a lock up before it converts. It could be argued that rather than make a put, MMEX is deciding to draw on the the note, and pre-pay it back via crownbridge at a higher pps which would require fewer shares for the crownbridge put. This is assuming that news is incoming that would help achieve that higher pps. It would also delay dilution pressure on any news.
Bad:
If MMEX has the option to draw a put of $100k @ a 20% pps discount, why would it use a note for $80k @ a 39% pps discount? Because they are worried about the immediate liquidity? If MMEX is worried about immediate liquitidy of the put shares, does that indicate that they are worried about pressuring the pps? If so, why? Does it as Bgmoney said indicate that news is not shortly imminent and thus they need to reach the QB requirement without financing news? And as a result they wish to avoid dilution at this moment.
Its able to be looked at either way. However you choose to view it, it certainly gives fresh ammo to the negative crowd, which is part of why I say I don't care for it at all.
Good:
MMEX has said that one of the purposes for the crownbridge arrangement is to pay down notes. If they need funding at the moment, they can either make a put to crownbridge or take a note. The crownbridge shares are immediately liquid in the market, where the note has a lock up before it converts. It could be argued that rather than make a put, MMEX is deciding to draw on the the note, and pre-pay it back via crownbridge at a higher pps which would require fewer shares for the crownbridge put. This is assuming that news is incoming that would help achieve that higher pps. It would also delay dilution pressure on any news.
Bad:
If MMEX has the option to draw a put of $100k @ a 20% pps discount, why would it use a note for $80k @ a 39% pps discount? Because they are worried about the immediate liquidity? If MMEX is worried about immediate liquitidy of the put shares, does that indicate that they are worried about pressuring the pps? If so, why? Does it as Bgmoney said indicate that news is not shortly imminent and thus they need to reach the QB requirement without financing news? And as a result they wish to avoid dilution at this moment.
Its able to be looked at either way. However you choose to view it, it certainly gives fresh ammo to the negative crowd, which is part of why I say I don't care for it at all.
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