MUST READ HERE!!! Someone mentioned that the recent conversion could be the 4% Notes that had terms to convert at anytime. This makes sense and it wouldn't shock me if the holders of these notes are the same d-bags that hold the ones due in Jan or Feb and are hoping to force a default by making it difficult for the company to raise funding by putting pressure on the SP. This way they can negotiate favorable equity terms.
A simple bridge loan allows management to take back total control. You have to think this is doable with their assets and being CF positive (I think). I like the fact that mgmnt owns a nice piece of the OS and have aligned interests with stockholders. Also they are a seasoned team with huge financial networking capabilities so a BL or other type or favorable restructuring seems very likely. All will be revealed soon and you will not want to be on the sidelines when this is announced.
In a nutshell this is a huge battle right now that will be played out when the Jan ST notes are due. The holders of these notes will do anything to try and get the company to default on them because they know there is tremendous equity value in the company and they want as much of it as possible. I mentioned early that I believe the recent conversions are the 4% notes that are due at a later time but those are being strategically converted recently to crush the SP and make it difficult for the company to fund and payoff the Jan and Feb notes.
If the company obtains favorable financing you can see the SP open up 5x higher. With the recent reg w/d I think mgmnt has this worked out and will hopefully announce soon. This is all just my opinion.
If the company announces the Jan or Feb Notes are paid or will be paid via refinancing this will open between .50 - 1.00 (resistance will not even come into play). This is a huge opportunity if management lays out an immaterial dilutive roadmap.
Buy and Sell at your own Risk. Dont point fingers, and make excuses. After all, wasnt it you that clicked the Buy Button?
