Gekko, this post demonstrates just how little you understand...

Gekko, this post demonstrates just how little you understand what is happening.


The price at which they do the D4E is less important than the dilution it will create. That is what will affect current holders the most. Right now you own a share of the business and its profits. After the D4E your share will be much much smaller. Prices will adjust to reflect this but what is happening in this D4E is that equity holders are giving future upside appreciation to debt holders in return for debt holders not sending the company into administration.

Debt holders are more senior than equity holders and so by doing a D4E, the debt holders are giving up seniority in claims in return for future potential upside. They are taking on more risk and will expect more return. More return than current holders and more return due to the poor financial health of this company.

I'd be surprised if the dilution was only 95% because current equity value is so small and the level of debt is many times larger.