Roadrunner Transportation Systems Inc. (RRTS)

[ICXCNIKA]

These rights are transferable. Will they receive a ticker and be tradeable?

The rights allow you to purchase your pro rata share of stock in the rights offering at $.50. You also receive an over subscription right that allows you to get up to the amount of shares you purchased under the base subscription. That is to say, you can double your pro rata share in the company if you exercise your full rights.

I anticipate Elliott will end up with north of 50% of the company.

Positives:
- At $.50 per share, I think this is a 50 to 80% discount to the actual value of the company.
- Alignment with Elliott, we will both be in the common equity
- Elliott will have control. They will either sell the company at the highest price they can get in the near term or they will make sure management turns the business around and then sell. Elliott has the power to throw out the management if they continue to underperform.

Negatives:
- Elliot will have control. Although Elliott will be mostly aligned with other shareholders, they will have the power to harm the other shareholders if they want to. For this reason, the greater percentage of equity they retain at the end of the rights offering the better for the other shareholders.