"So VWAP is relevant. In practice a new issue would be VWAP minus x%. Say 10%."
Any talk of being in a 'distressed debt' situation is pure speculation.
An example if the company needed funds they could remove the ability of investors to forego their annual investment (variation of contract) in exchange for a % share of the harvest. They haven't done that yet. they obviously would prefer the investor to pass their % share over to QIN.
"Depends how badly the company needs the money. They could be renegotiating put options also."
Again speculation based on assumptions of this year's plantation sales which we have zero knowledge of. I assume we will know more once we hear back from QIN. Hopefully it will be in the update.
It could also be that a buyer such as Blackstone is entering into a contract for a discounted purchase of this year's plantation assets. - Again speculation.
What is the worst case scenario if QIN had no sales? Still the annual fees would cover the ongoing running costs. This is a company with recurring revenue. It may mean some redunancies or discounted plantings this year but I think there's enough recurring revenue streams for this not to be an issue.
QIN Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
