This seems like a miracle deal for us shareholders.
Here's how I see it.
ASOF have $11.9m of notes of which $1.5m is forgiven because of the last rights deal. Those who did not subscribe to that rights deal can thank those of us who did later. This leaves ASOF with $10.4m that they could have converted to 11,555,555,555 shares. Yep, 11.6 billion. And no money would have come into the company. Now they will get $1.7m of cash to not get 10bn shares. That means they are effectively selling the shares back to the company at 0.00017. That's us that is buying them. They will still get 1,555,555,555 shares (still a fair whack, but a long way from 11bn. Luxinvest is putting in $4.25m to get shares at 0.0008, BUT it looks like part of the deal is to get $9m of debt written off. That's a great deal for us, as well as them. So for us shareholders, we get $4.25m less the $1.7m going to ASOF - total $2.55m in much needed cash. And we issue 5,312,500,000 shares but don't have to issue 10bn from the Secured notes.
Huh? We get cash, and get less dilution (4,682,500,000 less shares) than we would under the existing structure? Please correct me if I am wrong, but if I am not, then this is the biggest no brainer ever.
YES THAT'S RIGHT, WE GET CASH AND LESS DILUTION!!
If I am seeing this wrong, please correct me.
MST Price at posting:
0.1¢ Sentiment: LT Buy Disclosure: Held
