Wednesday, March 11, 2020 10:46:57 AM
How so? I'm not saying that the two situations are exactly alike, but I don't yet see how they are not comparable at all.
Actually it seems like they were. Treasury's Citi warrants were for a fixed number of shares, so those shares represented a smaller percentage of the total after the pref conversion.
Treasury's FnF warrants, on the other hand, wouldn't be diluted by a conversion if the conversion happens first. However, it might be difficult to get the junior holders enough equity value to make a pre-warrant conversion worthwhile to them.
I have changed my mind on this in light of Treasury having been willing to let its Citi warrants be diluted by a prior pref conversion. I think Treasury might try to maximize its overall dollar income, but that doesn't necessarily mean maximizing the warrants' value (and by extension the common share price). Treasury has other ways to make money here, like a partial senior conversion (which still depends on the common share price but allows them to go well above an 80% common stake), commitment fees, extra g-fees (as in the President's 2021 budget), etc.
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM
North Bay Resources Announces Successful Flotation Cell Test at Bishop Gold Mill, Inyo County, California • NBRI • Jun 27, 2024 9:00 AM
Branded Legacy, Inc. and Hemp Emu Announce Strategic Partnership to Enhance CBD Product Manufacturing • BLEG • Jun 27, 2024 8:30 AM
POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • POET • Jun 26, 2024 10:09 AM
HealthLynked Promotes Bill Crupi to Chief Operating Officer • HLYK • Jun 26, 2024 8:00 AM