Lets explore this a little closer
I assume the above to be true - ie 95% dilution coming by end of June
I also assume that as we approach this dilution SP will at best be around 8c
8c = MC of $28mil rounded off with 350mil SOI
a 95% dilution of 350 mil shares = 7 billion shares
assuming a D4E that means 6.65 billion shares will be issued at 6c (25% discount to SP - hey why not) in exchange for writing off $399 million debt
Result - they will own 95% of SGH, still have SGH owe them $321 million and another $30 million for working capital and here is the amazing reality:
IT ONLY COST THEM 20c in the $1 which in dollar terms is $720mil x .2 = $144mil
They sure are working hard to help SGH get back on its feet because its going to be their little cash cow for years to come.
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