As I've been saying all along, I think the toxics will extend again at the end of the year. But in the event they didn't, I went back and read the filings again.
If you go with the agreement as it is described in the press release,the note holders can only sell up to 5% of the daily volume, which is basically nothing. And the conversion price is the average for the preceding 12 trading days. So there shouldn't be any drop in stock price as a direct result of them selling, just the ongoing dilution. They can convert 25% every 3 months. So if you were to assume under the worst case scenario, they did convert 25% after Jan 1st at 2 cents they would get about 200 million shares. But it would take forever for them to sell that many shares. Bottom line, they need for the price to be higher for them to actually get their money.
I've been assuming that they were required to up list by the end of the year, but the actual filing only says this:
"The New Secured Debt and New Unsecured Debt is convertible into shares of
the Company’s common stock at any time after the up list of the Company’s common stock to NASDAQ or the New York Stock Exchange when the per share price is equal to or greater than 2x the price per share required for such uplist"
It never explicitly says that Amarantus has to uplist, but only makes mention of it. In the original press release March 28th, it says:
"The holders of the New Debt and the New Preferred Stock become eligible to convert at the earlier of nine months from the closing date of the Tender Exchange ("Conversion Date". "
There is some wording missing from the pr- the earlier of nine months or what? I'm assuming the earlier of 9 months or the uplist. So the uplist isn't really a requirement, just a way to time the conversion. If that's the case,
they may be able to convert a ton and get 200 million shares in January, but then the stock price is going to stay low with the dilution and they will never be able to sell that many shares at 5% of the daily volume. It's not going to make much sense for the toxics to try to sell (or convert) until the price goes up.
I think the presumption all along by both the toxics and Gerald has been that the share price would be a lot higher than 2 cents by now, so I think as long as they see progress being made, which there is now, they will continue to work with Gerald and give more time.
If you go with the agreement as it is described in the press release,the note holders can only sell up to 5% of the daily volume, which is basically nothing. And the conversion price is the average for the preceding 12 trading days. So there shouldn't be any drop in stock price as a direct result of them selling, just the ongoing dilution. They can convert 25% every 3 months. So if you were to assume under the worst case scenario, they did convert 25% after Jan 1st at 2 cents they would get about 200 million shares. But it would take forever for them to sell that many shares. Bottom line, they need for the price to be higher for them to actually get their money.
I've been assuming that they were required to up list by the end of the year, but the actual filing only says this:
"The New Secured Debt and New Unsecured Debt is convertible into shares of
the Company’s common stock at any time after the up list of the Company’s common stock to NASDAQ or the New York Stock Exchange when the per share price is equal to or greater than 2x the price per share required for such uplist"
It never explicitly says that Amarantus has to uplist, but only makes mention of it. In the original press release March 28th, it says:
"The holders of the New Debt and the New Preferred Stock become eligible to convert at the earlier of nine months from the closing date of the Tender Exchange ("Conversion Date". "
There is some wording missing from the pr- the earlier of nine months or what? I'm assuming the earlier of 9 months or the uplist. So the uplist isn't really a requirement, just a way to time the conversion. If that's the case,
they may be able to convert a ton and get 200 million shares in January, but then the stock price is going to stay low with the dilution and they will never be able to sell that many shares at 5% of the daily volume. It's not going to make much sense for the toxics to try to sell (or convert) until the price goes up.
I think the presumption all along by both the toxics and Gerald has been that the share price would be a lot higher than 2 cents by now, so I think as long as they see progress being made, which there is now, they will continue to work with Gerald and give more time.
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