Is "Existing" common getting cancelled? Yes."Existing" common shareholders will be cancelled and "New" Common will be issued. "Existing" common shareholder's will receive a warrant or right to buy "New" Common shares.
What will be the formula to determine how many warrants each shareholder receives? The formula is "No. of existing shares * 3%" That's it. On page 29 of the Second Amended Joint Plan of Reorganization dated 5/31/17, it says ...
So what are these warrants worth? Presuming OS is still 131 mil , the warrants are worth between .014 -.04.
How is that computed?. VNRSQ traded between .46 - $1.35 in the 4 months prior to filing for bankruptcy. At 131 mil OS, VNRSQ had a market cap between $60 mil - $177 mil before they declared bankruptcy on Feb 1. So the 3% warrants are worth 3% of $60 mil - $177 mil (or $1.8 mil - $5.3 mil). Divided by 131 mil OS = .014 - .04
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