I do not know where all the other great analytical minds on this board went to but our strategy should be and correct me if I’m wrong.
Object to the Judge’s ruling by Jan 25, and not because we were ruled equity, because she will not reverse herself, but to clarify our conversion formula to equity. If we are equity then Judge Walrath relied on the Dime Warrant Agreement to convert us from warrants to common stock, so in accordance with consistency we should convert our warrants based on the Dime Warrant Agreement conversion formula.
The trigger? What better date than the Judge’s ruling that we are equity?
Dime Litigation Prospectus
Upon the occurrence of the trigger, you will receive the right to purchase
your pro rata portion of an amount of our common stock equal to the adjusted
litigation recovery divided by the product of (1) our adjusted stock price
multiplied by (2) the number of LTWs issued and reserved for issuance. When you
exercise your LTWs, you will be required to pay an exercise price equal to
$0.01 per whole share of our common stock you will receive as a result of that
exercise. In the case of a reclassification, reorganization or combination by
us, the exercise price formula will be adjusted. See "Description of the LTWs--
Adjustments" beginning on page 17.
For example, if the adjusted stock price of our common stock on the
occurrence of the trigger was $20.00, the number of LTWs issued and reserved
for issuance was 110,000,000 and the adjusted litigation recovery was $250
million, then the number of shares of our common stock issuable upon exercise
of each LTW would be 0.1136 ($250,000,000 / ($20 x 110,000,000) = 0.1136).
Using our numbers
$337,000,000 / ($.06 x 110,000,000) = 51 shares
51 shares x 110,000,000 = 5.6 billion shares
75% of newco stock
We need a clarification in order to make an intelligent choice regardin the Stip.
Question: When do we vote on the Stip? It should be after Jan 25, correct?
