"if bond deal is scheduled in a way, that company assets are pledged as collateral, if company ever gets in trouble with debt holders, bond holders will get the assets. And shareholders - you and me - we get NOTHING.
Essentially, this next big offering can be the end of any shareholder value."
Oloos,
I am dumbfounded! Would someone post this innocently out of ignorance, or do you have an agenda?
The company just reported projected net assets over $300M with no debt. What kind of collateral do you think they'd offer for a $15M bond? Even if they offered $30M, don't you think they would simply sell something at that point to pay back the $15M? Or they could issue shares at that time.
"End of shareholder value." Are you trying to influence / sabotage / fool us?
The principal may well not be due for 5 years, while the company will be cash flow positive next year, possibly late this year.
Finally, in any signed bond, you can be damn sure that the bank will have endorsed the company's financial wherewithall.
Very obviously, we shareholders would be sitting much prettier. This is so blatently obvious that I question the reason for your post, ignorance or agenda?
