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I disagree with Bruce O.
IMHO...
It means nothing for commons. Commons are being wiped out 100% with 100% probability. There is zero chance.
Best to accept that.
The bonds trading at 3 cents on the dollar should be enough evidence. If not the judge saying it is "hopeless" for equity holders should be enough.
Baggies cling to worthless MORs where the "accounting" shows equity but most of that is intercompany balances at cost. The CRO laid this out in testimony this week and noted they are billions in the hole no matter what.
There is ZERO chance and anyone who tries to convince you otherwise is delusional or lying. Or both.
Document whatever you hear or read.
TREDD,
It's not very complicated. Cyrus is a major creditor that had a seat on the board. When things are going along fine (i.e. solvency) there is no conflict.
When things go off the rails a conflict is created because lenders move in to realize on their collateral etc. which usually wipes out equity holders. There's no reason for him to be on the board and he'd probably have to recuse himself from any decisions in dealing with lenders anyway.
As a director he also has personal liability to think about so the sooner he gets off before Cyrus pulls the plug the better for him, personally. Being on the board of a company that goes through a bankruptcy is not fun and it follows you around.
Usually the simplest explanations are the right ones. Just read the letter from Cyrus - it's classic "we are about to pull the plug and call our debt" language.
The ONLY thing shareholders have going for them, in my opinion, is that Cyrus it self might be screwed. They are sitting behind Opus Bank's $18-$20M in debt that has a first claim on the receivables, inventory and other assets that can be liquidated. In a liquidation even Opus takes a haircut in my opinion. So Cyrus needs to do SOMETHING to get Opus bank out whole and allow them to jump to the top of the heap - IMHO that can only be a potential sale of Overland+Tandberg+Rdx. If they could get something like 0.3X revenue for that business (Quantum trades for 0.6x and has gross margins almost 2X higher with much better product) they might get enough to get Opus out. Hopefully that buyer would take the employees and severance liabilities that would go with it (Nobody will take EK's severance on IMHO). That would leave Opus with V3 + "glassware" which aren't worth much IMHO but the burn would be way down - they could then do a massive debt to equity conversion like their letter says ($27M at say 27 cents would be 100 million new shares). That would leave about 150M shares outstanding owning effectively.
That would be the upside case for shareholders IMHO - to be left with MASSSIVE dilution and no real business prospects but SOMETHING that could bumble on for a bit.
But to be honest I think investors are looking at a total wipeout and Cyrus will be very lucky to get half of their debt back.
All IMHO and speculation only.
Docket 1979 today. The Chief Restructuring Officer who is inconflicted and whose SOLE job is to maximize recovery for all, explains in plain English today why it is utterly hopeless for equity holders.
And STILL people won't listen!
It's a zero people. Take your 8 cents and move on. It's a gift!
What new board members? Unlikely they will get anyone to replace Bordessa. The personal liability is an issue now.
Also if you are a director of a company that files for bankrupty you have to disclose that for many many years in other securities filings.
Bordessa could have easily recused himself from board votes where there's a conflict. He'd also have more influence in the "strategic direction" from inside the board room, not outside of it.
Don't kid yourself - he resigned (IMHO) because I believe Cyrus is gearing up to declare a default on the debt, and he's concerned about personal liability if he stays on.
All you have to do is study other such situations.
The fact that the daytrading swarm is on this name right now is a give for anyone that wants to get out with something, IMHO.
I don't think this company survives the end of Feb.
All IMHO and speculation.
Long term holders:
Consider the fact that the daytrading swarm is currently in the name a GIFT. If they weren't here the stock would be at 5 or 10 cents after the Cyrus announcement.
IMHO.
I agree JFM. This is standard practice.
The nuance here is Cyrus is in jeopardy. They are underneath $18-20M of Opus debt that ranks ahead of them. Cyrus will likely wipe out the common shareholders here but they are at risk of their sub debt / convert getting destroyed as Opus liquidates.
Best play for Cyrus is to try to sell RDX, Overland, and Tandberg chunks off as going concerns, possibly separately - maybe get enough to cover the Opus debt and put them in a first position where they can wipe out the commons and be lift with V3 and, ahem, "Glassware 2.0". lolz.
Remember the Opus debt has "business plan covenants" so they may be in default already or possibly as of Dec 31. The Cyrus debt all has cross-default provisions so it's quite possible in my view the company is about out of money and will owe $47M in January.
Given the announced "bids" - they are probably stink bids (i.e. fair bids for these crummy assets) that might be enough to get Opus out and allow Cyrus to salvage something. It's likely IMHO that EK, PT et all are likely resisting such deals as it wipes them out and they are getting fired as well it seems from the Cyrus letter. My guess is EK only cares about his massive severance package at this point (he would be an unsecured creditor ranking along Cyrus in a restructuring) - but he needs to get sacked without cause first or have a change in control.
Usually in these situations management start holding out their hands for "retention bonuses" etc.
In any case as I've said all along, the trigger I was looking for in calling a zero is the Cyrus resignation. I am calling it now.
To zero.
All IMHO and speculation only.
https://twitter.com/Keubiko/status/811954656045830144
I just randomly stumbled across this one as well.
Some random info I just stumbled across:
https://twitter.com/Keubiko/status/811952546042494976
https://twitter.com/Keubiko/status/811946231236792320
https://twitter.com/Keubiko/status/811945506599473154
I love that they got the letter on Dec 20. Sat on a director resignation for days, and put out a puff/nothing PR while we saw 7.8M shares trade that day.
Cyrus has to tread carefully. Opus is driving the bus. Cyrus looking at a possible total wipeout on even their debt.
One the daytrading swarm moves on it will likely be sub 20 cents. Maybe lower as they tend to pull in a lot of fresh suckers and the stocks they hit end up lower than before they started pumping it.
Just be careful with eyes open. Do you think any of the people flooding this board and StockTwits know anything at all about the company?
Corel was described as a "proof of concept" for Glassware 2.0 as well.
In 2013.
2017 starts in 12 days.
Novarad
Golly, I can't seem to find a thing about NovaGlass VDI on their website now.
Probably in stealth mode?
Did everyone see that desperation (IMHO) PR today?
LOL!
They've done a "proof of concept" now. Hah.
Translation: Q4 results will suck.
IMHO....
Interest on the converts is about $500k
ANY of course can't afford to pay it in cash so has to pay it in shares.
At 20 cents that 2,500,000 shares per quarter (10 million per year) just to pay the interest alone.
Dilution galore....
IMHO....
Wow, that's awful news for ANY.
Don't forget that Cyrus gets paid interest in shares of ANY at prevailing market prices.
Run that dilution at 20 cents......
I think you are right. Booted to the junior exchange first with a reverse split and they can buy themselves 6 months before punting to the OTC.
So it seems in Jan we can expect a reverse split announcement.
More important is meeting payroll, of course...
Maybe. I'll try to get the definitive answer from NASDAQ.
Least of their problems in any case. Meeting payroll is far more acute.
Wrong.
You are looking at the continued listing standard. You ALSO need to look at the INITIAL listing standards - note the following in the sentence you quoted with my CAPS:
"meeting the continued listing requirement for market value of publicly held shares, AND meeting ALL OTHER INITIAL LISTING STANDARDS, with the exception of the bid price requirement."
The initial standard includes the $15M in traded market value. Look it up.
While retail investors can be forgiven for falling for too-good-to-be-true stock pumps, there is no excuse for the muppets at places like Clinton Group and Cyrus.
Cyrus is VERY interesting. It certainly seems like the whole thing has been 7 year hole digging from an awful loan they made to Tandberg which went bankrupt.
There's an old saying - your first loss is usually your best loss. Cyrus kept digging - taking control of Tandberg via bankrupty, then loaning money to Overland to effectively force a merger of the two, then doing the same again with ANY.
My understanding is that Cyrus owns the ANY investment (in debt and equity) in DIFFERENT funds - I suspect much of the older money is in common shares, and the newer funds own more of the debt. It reeks (IMHO) of potentially throwing good money after bad and potentially using new investors to bail out old investors.
I'd be particularly interested in how they have been marking the debt on their books - my guess is par, even though I think they may very well end up taking a big haircut on it.
The "good" news for Cyrus now is that there is less of a conflict - their equity is basically worthless now so they really only need to focus on the debt they have.
I don't think they'll want to take lumps this month, but IMHO all bets are off in Jan when that bridge loan starts coming due.
IMHO the company is being run for the creditors now.
Just my speculation and guessing, of course.
"""Be easy on them. It's the ONLY life they have."""
Lashing out at others for your own egregious investment mistakes is counterproductive.
IMHO...
Not at all. I've been trying to warn people of the risks and continue to do so.
I take no delight in seeing what I'm sure are good people (in "real" life) lose money.
Except for a few crabby patties like Westeffer that is. You should see the messages he wrote me and the language, my word, the language...
My analysis of the NASDAQ requirements the need to meet in January is that even if they announce a reverse split to get an extension to July, it will be denied if they don't have a $15M+ market cap.
At 50.8M shares that is 29.5 cents.
We just punched below that at 29 cents.
Ugghh....
How many companies that get kicked to the OTC ever make it back?
IMHO....
Translating today's PR:
The "real" news today is that they other non-binding "proposal" they announced OVER THREE MONTHS ago isn't even at the point where they would hire a financial advisor.
Combined with utter silence on the "$25 million non binding term sheet" the market is naturally selling off. The company is out of money again (on my math) in a small number of weeks, nothing happens over the holidays. They Cyrus bridge loan has to start being paid back in Jan. Opus covenants might be a factor.
Net net the selloff is rational to me. A quasi-confirmation (IMHO) that there is no immediate cash infusion from an asset sale, and about the 300th "boy who cried wolf" PR from Eric Kelly and crew.
Now I'm asking myself WHY would they put this out. They don't need to PR "non-binding proposals". The only things I can think of off the top of my head are:
1) A desperate attempt to pump the shares or keep them above 30 cents so they don't get booted from NASDAQ next month.
2) A lame negotiating tactic - perhaps the first "proposal" was so stinky they are trying to create the aura of a competitive process to try to get the vultures to pay up a bit more.
3) Worry about direct liability given they had that September announcement out there lingering with no update.
4) There's also a line in the PR about "these and other potential transactions". They might be trying to advertise to the world that they are open to being bought.
That "other transactions" line is an indication of extraordinary desperation in my opinion. Saying you are open to "other transactions" when your stock is down 98.7% or so and your market cap is $15M is the kind of stuff companies put out to cover their behinds before filing for bankruptcy - "we tried, sorry!" IMHO....
If I were looking at buying some scraps here or the company, You wouldn't likely pay anywhere close to the outstanding debt. And I'd probably want an asset deal so I'm not left with massive liabilities like Eric Kelly's severance and all the European employees from the Tandberg days that are super costly to fire.
OMG.....
IMHO....
Lucky you, now your cheapies are even cheaper.
33 cents - nice close.
3 more cents and even a reverse split won't save their NASDAQ listing.
Of course, payroll is more important at this stage....
IMHO....
And all the while the stock is at 40 cents and the market cap is $20M.
Hint: it's a debacle.
Market cap now $22.3 million. I guess Microsoft and all the "big boys" don't want to step up and buy the amazing magic "Glassware" for such a pittance.
The "third platform of the internet" isn't worth 8 seconds of Microsoft's cash flow, apparently. And Eric Kelly at the 2015 AGM said "the entire C-Suite of Microsoft is aware of us".
Note if they can't hold a $15M market cap they can't even keep the NASDAQ listing with a reverse split.
1.1M shares so far in today's pukefest.
IMHO......
Here comes the volume. 842K shares today and $0.43 and falling fast.
Starting to smell like game over IMHO.
One factor that could be making it worse is that if there is a big tax cut next year, it's more valuable to take the massive loss this year rather than 2017.
IMHO.....
You can find the data at SEDI.CA
These are 10B5-1 sales
"What is the 'Rule 10b5-1'
Rule 10b5-1 is established by the Securities Exchange Commission (SEC) to allow insiders of publicly traded corporations to set up a trading plan for selling stocks they own. Rule 10b5-1 allows major holders to sell a predetermined number of shares at a predetermined time. Many corporate executives use 10b5-1 plans to avoid accusations of insider trading."
In this case EK and Kurt K appear to have set up pre-determined dumps to cover their tax bill when RSUs are released to them (the free restricted stock they get because they are doing such a great job).
They probably set these up a while back. Basically the logic is you sell enough to cover your tax bill and then you have no risk. Some execs (e.g. ones that are confident in their businesses) just pay the tax and keep the shares.
In this particular case it's prudent, IMHO, for them to do this -as getting a tax bill based on $0.50 stock and then having the company go under or having to sell it at $0.05 is a kick in the chops.
As to why they were filed late, there is no excuse - it's a violation of securities regulations but the penalties are minimal, if enforced at all.
All IMHO.....
I know what these are. Given their outrageous salaries they don't need to sell these shares for tax.
And god forbid they actually buy shares at 47 cents lol.
In any case being months late on insider filings is inexcusable.
IMHO....
Today is the 3 months anniversary of the Sep 13 "Corporate Update"
Smell the momentum.....
CEO and CFO Share Dumps:
Once again, Eric Kelly and Kurt K are late with insider filings, but per SEDI here are the latest dumps (transactions from Oct thru Dec all just filed on Dec 8):
Kurt K CFO:
Oct 19: 4,236
Oct 19: 576
Oct 20: 4,254
Oct 21: 574
Oct 26: 4,533
Oct 27: 456
Nov 1: 4,516
Nov 2: 458
Dec 6: 8,488
Dec 7: 8,398
Now for Eric Kelly, CEO:
Oct 18: 5,917
Oct 19: 808
Oct 20: 5,951
Oct 21: 804
Oct 26: 6,315
Oct 27: 768
Nov 1: 6,291
Nov 2: 770
Dec 6: 11,876
Dec 7: 11,750
"""You don't even know what a clawback is! (Seinfeld voice)"""
I most certainly do.
There will be no clawback here. Even if there was and they voided a transaction:
a) the estate is required to return the cash or share consideration received.
b) With respect to TERP and GLBL it would probably be in their interest to unwind as $SUNE was notorious for stuffing those companies with overpriced projects, and they even raided GLBL for cash.
c) It makes no difference to equity, which is a zero. With 100% probability.
Probably not a lot of downside as long as they keep UMG happy. Other than that would just be time value of money on other opportunities.
Agreed!
I'm not short. But I am a creditor. I'd like nothing better than for bagholder a to get something as it means I'd get a 33x on my bonds.
Only posting here to warn people off of flushing their money down the toilet and listening to people that don't have a clue.
Wrong.
It's end of January 2017.
They MAY be able to get an extension to July but only if they meet several criteria.
"A company listed on the Nasdaq Capital Market may be eligible for an additional 180-day compliance period if it meets the market value of publicly held shares requirement for continued listing, all other initial inclusion requirements for the Capital Market, except for the bid price requirement, and provides written notice that it intends to regain compliance with the bid price requirement during the second 180-day compliance period, by effecting a reverse stock split if necessary"
At a minimum they will have to announce a reverse split in January (if stock not over $1).
My read of the rules is they need to maintain a $15M market cap which is around $0.30. Not a given. Especially since they probably need more cash by then....
IMHO....