But J.T., it IS simple. Wynnefield strikes a deal to buy a mess of the 2nd tier notes that get converted into equity in a swap. That's the real money. The pocket change is in the outstanding float in common shares. You buy them up for <15 cents, cash 'em out for a dime and lose next to nothing. Remember, the max shareholder payout proposed is $2.6M... that's peanuts. By scooping up over 50% of the common float, Wynnefield could block any disruptive shareholder action to stop the deal.
I am not saying that this is the outcome. I do not know. I am saying that such a deal is not impossible, it would not be unethical or illegal and this kind of horsetrade is not all that unusual in an over-leveraged mid-cap that is trading in pennyland for reasons beyond its immediate ability to control... such as Medicare changing up reimbursements as which recently sent Freedom Healthcare into liquidation.
Sometimes simple is good. Sometimes simple is just SIMPLE!
Hey, I thought it was you that described this trading arena as the Netherworld of "Gypsies, Tramps & Thieves." I agree with you. Maybe you should try thinking like them? LOL.
Good luck!
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