We are yet to receive an update on noteholders. From update 16 Dec 2020:
Knowing this outcome is important if you want to start trying to estimate any returns from a potential case win. You can't just take the figure of $US8.76B and divide it by the number of shares on issue (9,450,021,556 - Annual Report to Shareholders, 27 Oct 2020). If the noteholders convert debt to shares, then there is dilution. Let's say they used a similar agreement to the one listed in Market Update 12 Nov, 2020 :
This would add an additional 14.548B shares, giving a total of 23.998B. Now, $US8.76B is $AU11.526B (at current rate of 0.76). And then $AU11.526B/23.998B Shares is $0.48 a share. This would represent a maximum limit. Then, take off the lawyers percentage (I have no idea - someone with real knowledge chime in)...errr...I dont know...20%(?)...so ballpark it around 40c/share.
This is just a rough calculation, assuming that we could get paid out in this manner (split winnings by % of shares you own). I simply don't know how these things work. Would someone like to contribute to this conversation. Happy for you to critique my thoughts.
SDL Price at posting:
0.6¢ Sentiment: None Disclosure: Held
