AI
Thursday, November 16, 2017 10:19:12 AM
Ahhh.ok 
behind my coffee consumption profile by a cup...
Well the idea I have seen floated is that the "equity investors" buy out the notes (following your analogy with a mortgage)...or buy enough stock to allow the company to buyout the notes so they aren't left sitting behind a bunch of convertible debt...with their equity.
While it is certainly an attractive notion...it is unlikely for a few reasons:
1) The current "ripe" notes allow the noteholders to make 300-400% on their money. They aren't going to wait around to be "bought out" and make only 15-20%.
2) If Tom REALLY had good equity offers, he would certainly have taken them by now to buy out those notes in October BEFORE they hit their 6 month maturity...and if he had access to ANY better financing than convertoble debt he would not have sold yet another note on October 12.
...and frankly if the conversions have started back up and yet more convertible debt continues to hit the books (which won't be known until mid February anyways) then it is hard not to conclude that all of Tom's statements about equity investor interest is not what it seems.
behind my coffee consumption profile by a cup... Well the idea I have seen floated is that the "equity investors" buy out the notes (following your analogy with a mortgage)...or buy enough stock to allow the company to buyout the notes so they aren't left sitting behind a bunch of convertible debt...with their equity.
While it is certainly an attractive notion...it is unlikely for a few reasons:
1) The current "ripe" notes allow the noteholders to make 300-400% on their money. They aren't going to wait around to be "bought out" and make only 15-20%.
2) If Tom REALLY had good equity offers, he would certainly have taken them by now to buy out those notes in October BEFORE they hit their 6 month maturity...and if he had access to ANY better financing than convertoble debt he would not have sold yet another note on October 12.
...and frankly if the conversions have started back up and yet more convertible debt continues to hit the books (which won't be known until mid February anyways) then it is hard not to conclude that all of Tom's statements about equity investor interest is not what it seems.
