Tilator, you are close. (in my personal opinion lol) this was classified a resale because it was renegotiating 6.8 million warrants that were already issued.
If you recall Boyd bought back in October Shares for $1.10 and exercise able warrants at a strike price of $1.25. Then back in March they bought more shares with warrants of a strike price at 60 cents and 75 cents etc. Those warrants amounted to these 6.8 million we are discussing today.
Now understand what a warrant is, its an option to buy at the strike price not a "you must buy". therefore the warrants are not part of the float until such time they are converted.
what today did was re sell or renegotiated those warrants. The holders now agree to convert the warrants at the strike prices that was originally set, HOWEVER instead of paying the strike price they will now only pay 455 cent per share converted.
so while the company was going to get money at 60 cents, 75 cents 1.10, 125 and $1.35. They now only will receive 455 cents per warrant but only when the original strike price is met.
This "promise" to buy now means the warrants must be counted as actual shares and part of the float and this then meets the companies need for compliance of share holder equity. It does not however get the company immediate cash.
Basically look at it as if you rolled back the original offers and instead of buying shares at $1.10 and then warrants at $1.10, they now can buy those same warrants for only 45 cents when the share price hits that $1.10.
does that make sense? well, I should ask do you understand, the concept is crazy in my mind. the company just gave away extra equity. If they can get the share price up to that strike price, which they must in order to get the funds anyway, who wouldn't have paid the original warrant price? But we all know Odidi is no longer in the drivers seat. The man with the deep pockets calls the shots.
feel free to disagree this is just my opinion on how this works.
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