The company asked for suspension pending an announcement, in view of an event which will result in holders being asked to vote upon:
1/ the already known resolutions regarding Convertible Notes, issued in 3 tranches over the ensuing 12 months
2/ an as yet unannounced resolution which will result in holders being asked to delist the company
Within today's announcement the company states that the hitherto mentioned Convertible Notes funding is the only option available to it and without it the company will be in breach of its covenants with Goldman Sachs, it will run out of cash and will be wound up. It also states that it has no other short or long term funding options. It sets out a vast table of consequences of dilution at various prices, should all tranches of the Convertible Notes be taken up. Those effects of dilution will result in extreme concentration of ownership of stock by the 2 holders of the Convertible Notes.
The company is domiciled in Israel. Under Israeli law the 2 Convertibles Notes holders may hold a maximum of 24.99% of the company's stock each.
In my opinion holders will be asked to vote upon a proposal for the 2 Convertible Holders to purchase the entire stock of the company it does not hold, avoiding a breach of Israeli Corporations Law, under a Scheme of arrangement, most likely at only a few cents, and only to avoid the company being liquidated with no return to its shareholders.
SPT Price at posting:
7.6¢ Sentiment: None Disclosure: Not Held
