Just getting to a screen larger than my phone, so
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Posted On: 06/15/2020 3:16:11 PM
Just getting to a screen larger than my phone, so here's my initial 2 cents...
1) Joe didn't want to deal w the sharks on the original S-1, so this a creative way to prime the pump with a more controllable, less dilutive approach.
2) This would raise over $21MM of usable capital (after the required sinking fund for interest pmts), so it should get the wheels turning, close AltuCell, etc.
3) The 13% concerns me, as that is a pretty rough rate w rates where they are now. However, GNBT can buy back the Pref shares any time they want/can. The sinking fund of 40% would be around $13.2MM, so that would cover the first 3+ years of interest payments. So, start the clock on that when the $ hits the account. If we aren't producing some cash flow when the timer goes off, look out!
4) It's not very dilutive to our shares. But, since we'll be sitting behind these guys, there certainly won't be anything for us if the company goes South (but I don't think we were expecting anything in the event of a fold anyway).
5) If NGIO goes well, we could conceivably pay these off and close out the 13% very quickly, but if NGIO doesn't offer the kind of accessible cash (thru profits or sale of stock), we aren't dead in the water.
6) Pref shares don't get a vote, so no dilution of our votes (unless interest payements are 18+ months in arrears).
I guess, unless I get into the details and find some catches, it seems like a better setup for both the company and us... if there is enough interest for the 1MM pref shares.
1) Joe didn't want to deal w the sharks on the original S-1, so this a creative way to prime the pump with a more controllable, less dilutive approach.
2) This would raise over $21MM of usable capital (after the required sinking fund for interest pmts), so it should get the wheels turning, close AltuCell, etc.
3) The 13% concerns me, as that is a pretty rough rate w rates where they are now. However, GNBT can buy back the Pref shares any time they want/can. The sinking fund of 40% would be around $13.2MM, so that would cover the first 3+ years of interest payments. So, start the clock on that when the $ hits the account. If we aren't producing some cash flow when the timer goes off, look out!
4) It's not very dilutive to our shares. But, since we'll be sitting behind these guys, there certainly won't be anything for us if the company goes South (but I don't think we were expecting anything in the event of a fold anyway).
5) If NGIO goes well, we could conceivably pay these off and close out the 13% very quickly, but if NGIO doesn't offer the kind of accessible cash (thru profits or sale of stock), we aren't dead in the water.
6) Pref shares don't get a vote, so no dilution of our votes (unless interest payements are 18+ months in arrears).
I guess, unless I get into the details and find some catches, it seems like a better setup for both the company and us... if there is enough interest for the 1MM pref shares.
(2)
(1)Generex Biotechnology Corp. (GNBTQ) Stock Research Links
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