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Re: SteveSchiets post# 1292

Friday, 10/30/2020 10:33:53 AM

Friday, October 30, 2020 10:33:53 AM

Post# of 9024
Steve, this restructure of the convertibles likely needed to get the ABL/Patent financing deals approved because the default comes in just a couple of months from now, the terms of adding 10% to the principal and dropping the conversion pricing from .35 to .05 are terrible, but presuming that S7 intends to repay these notes then not really bad at all, the terms say upon getting the ABL/Patent financing at least 50% of the debt required to be repaid so max share dilution would be approx 130 million addl shares based on the following

$12 mil debt (correct?) + 10% = $13.2 mil debt /2 (assume 50% repaid) =

$6.6 mil debt / .05 (worst case) = 132 million shares dilution


but if you believe the preceding news on Tencent & Alibaba, as well as Molex and N/A Tier 1's (GMAFIA), and the $200 million "direct" market projected for S7 ACC's in 2021, then there would be no reason ALL of the debt could not be easily repaid
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