Wow, some people will believe anything in the face of clear contradiction... with almost a religious zeal. First question you should ask is, if Wyloo notes have convert into HAS shares at anything like $5.50, why is the HAS MC ~$50m (incl cash on hand) when the NEO investment is worth >$50M??? I'm bearish on Yangi, but it's still worth more than nothing to believers yet HAS is tracking on being worth shell value by Oct'25...
Don't believe, read Note 19 from HAS June 2023 Ann Rep on Non-Current Liabilities which describes the nature of the notes (redeemable for cash at maturity or convertible into shares at Wyloo's election). The "Embedded Derivatives" refer to the 'Call-Option" I described by way of practical example what was going on with the exchangeable option for Wyloo (at their choice). The Monte carlo simulation applies probabilities to all possible share price outcomes and thus probabilities of the notes being redeemed for cash (because shares agree worth less than $5.50) or exchanged for shares (because price is higher than $5.50)... obviously HAS is better off if Wyloo choose to convert into shares at $5.50 than demand cash redemption, thus the 'embedded derivative' value reduces the liability according to said Monte Carlo simulation valuation of the derivative like option.
An old saying is, you can't argue with someone carrying the twin crosses of ignorance and ideology... so my effort stops here.
GLTAH
HAS Price at posting:
37.5¢ Sentiment: None Disclosure: Not Held
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