Wolf Energy Services Inc (WOEN)

[Oxonius]

Yes, but this is a classic example of "six of one and half a dozen of the other".

Don't forget that actually forking out cash was not an option because the coffers are empty and they have zero access to traditional funding. So, the real choices were either (i) write up another IOU and increase the overhang, or (ii) try and squeeze blood out of a stone by "exchanging" obligation for shares (and reducing the overhang at the same time).

They recognize that the overhang will never be paid out in full and that it is, by far, the largest deterrent to any merger "partner". So, this is why they are getting when the getting is good as a smaller overhang correlates to a degree with a higher value per share.

The fact is that John and his "independent" buddy can wipe out all non-family minority shareholders with a stroke of the pen as they already have the "authority" to issue themselves millions upon millions of shares whenever they choose (though I think this is somewhat unlikely as any potential merger "partner" would run a mile if they thought there was the possibility of future lawsuits related to the inside dealing).