Crunching the numbers. It seems the dilution is happening at a steady rate of approx 20-22% of the daily volume (4.3 mill sold Dec 27-30, and 9.77 mill sold Dec 30-Jan 6)
At this rate and keeping a $3.00 conversion price (clearly not happening but simple for math) they will need to sell a total of 67 mill shares to raise the $200 mill cash.
That would give us approx 101 million shares outstanding and a $303 mill market cap, but would have raised $300 mill cash. So at the current price would essentially value the rest of the company at ZERO.
My thoughts are this stock will have to trade another 200 million shares to complete the current dilution, which will eat the 53-55 million new shares that could be issued (much more if price keeps falling).
BUT!!! this company clearly has a valuation higher than the current $144 market cap at $3 per share, if you consider the $100 mill just raised, this share price only reflects $44 mill in asset value plus the current corp debt.
As long as George does not continue this deceptive practice, with this (non related LOL) investor this company would easily justify a mkt cap of $400-500 mill with $300 mill of new capital. My expected target of shares outstanding is 125 mill when the dust settles.
JMO, Good luck to all.
AI
