It is a curious move. I know they have millions in toxic debt but the lowest conversion price I recall was 4 cents and the rate could be much higher.
Even if $10 million in toxic debt was converted at 4 cents per share, that's only 250 million additional outstanding shares, but that seems unlikely to happen all at once.
So if they haven't yet maximized their outstanding shares, what's the reason to add an additional 104 million authorized shares? Is it perhaps to be able to provide shares to a buying party? Okay, that's just my wild guess.
Only a week away from the shareholders update. I must say that the Coinstar deal does seem quite legit as it really could bring Coinstar a lot of additional revenue per machine, from new ad revenue and additional coin conversions.
This one's a tough call for me. The recent slow price rise on low volume, and a ridiculous bid/ask spread doesn't lend much confidence. And now that it's bumping up a downward trend line, it's a pure binary event to me. We'll find out soon enough.
