Z shares have anti dilution clause since 2015. Z share strike price was fixed by judge on the order, some one can put that order here, I can also find it and post it if you like. Based on what I remember Z had strike price was $8.40.
Mudrick did not know about Z warrants and did not recognize when they took HYMC to public through SPAC. It was recognized, given strike and anti-dilution since later part of 2020.
Current calculation what Mudrick has done around strike price (around 40$) is flawed, as he is taking Debt that was taken post 2015 to calculate strike price for Z shares. Strike price of Z shares should be close to below $8 or below.
Now consider additional 500 million equity dilution, on a conservative side it will be additional 250 million shares to be added to current 60 million shares.
Applying anti-dilution:
Pre equity sale: 60 Million holds 82.5% Z share has 17.5%
Post equity sale: 310 Million holds 82.5% and Z share hols 17.5%
To provide equal weight: Z shares will have to split into multiple shares and its strike will go down to proportion to HYMC dilution. Which will be around 1/sixth of current recalculated strike price.
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