Die Hard Longs,
Her are a couple of positive sections of the latest SEC filing:
The Company, Standard Radio and Mr. Mandelbaum entered into a 180-day lock-up agreement with regard to all shares held by Standard Radio and Mr. Mandelbaum.
****Thus all the bashers on RB who are saying that they are shTT Canning shares are wrong. the latest round of financing from Standard and Jeff was to give them another 8-10 weeks to obtain finanicing not to seel us out.
In connection with this current financing, Rose Glen Capital Management, L.P. and RGC General Partner Corp. on behalf of RGC International Investors, LDC ("Rose Glen") have agreed in principal to certain concessions in regard to Rose Glen's existing preferred share position in the Company, which will be effective upon execution of a Modification Agreement between the Company and Rose Glen, as follows:
- All of RGC's existing investment options and warrants to purchase company common stock will be cancelled.
- RGC will convert a sufficient number of the Series A preferred shares held by RGC so that RGC holds 4.99% of the Company's outstanding common shares.
- RGC will agree to modify the conversion price of its remaining Series A and Series B preferred shares such that 75% of its remaining preferred shares will be convertible at a fixed price of $0.4375 per share and only 25% will be convertible upon the original formula price, but will be subject to a $0.4375 per share conversion floor price
***Why would RGC not take further advantage by converting all of their shares until this thing is in the BK house? the only reason I can see them making these concessions is GLMC has a chance to obtain further financing but the only way they could was to have the RGC mess out of the picture.
Heres what I think needs to happen:
GLMC needs to obtain atleast 5MM which will keep them in business for another 6 months.
Then they need to spend atleast 1MM to buy back shares. At this price they could buy back 8 Million shares out of the float. to do this they need cooperation from all big parties involved.
Then they may also need to do a stock rollback to prevent from being delisted.
Then they beter hope and prey for a tech rebound in January and increased revenue and we culd see $2 a share by March of next year.
What do you guys think. BERNARD is this viable.
DC
AI
