My main tripe with this deal is the $143m worth of RED shares that essentially disappears. In a roundabout way, LT essentially has paid that money to someone and it vanishes off SLR's books. You shouldn't be allowed to just make $143m of equity disappear.
However, if i really look at the deal, SLR holders are not too much under water. With a conversion rate of 3.43 shares, every 1c RED rises in the meantime is 3.43c worth of value for SLR holders.
On that notion, once RED is worth 0.37c we will be ahead of where we were at Friday's close. That is only a 3c increase required on RED'S part from today's close. I think that is more likely than less likely to happen.
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My main tripe with this deal is the $143m worth of RED shares...
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