Conversion Solutions Holdings (fka CSHD)

[oceansorcas]

What's so hard to understand about this deal?
CSHD arranges for several bondholders to assign their bonds to CSHD for some consideration (perhaps stock). CSHD can then use the bonds as balance sheet assets. CSHD then goes out and hypothecates (obtains lines of credit) using the bonds as collateral. This is innovative and quick funding!!! Because the book value of CSHD has dramatically risen with the 3 global funding deals, the new entity has a book value of $7 or $10 rather than $1 or so. Final question: if CSHD now has a book of $7 or $10, why is the current pps $1?. Answer: this is a rare instance of a tiny private company going public AND AT THE SAME TIME increasing its book value by 20 or 30 times. Doesn't happen very often and will be looked on with skepticism until the filings are seen and digested. Based on developments I have almost no doubt that the filings/pps reset will occur and we will see an opening pps of between $7 and $20.