Replies to post #15455 on GNCC Capital Inc (GNCP)

[unbiased investor]

To round off my previous statements here, if the holders of these preferred shares were willing to make this deal happen, they would need to know it was in their best interests. As stated before, since their conversion rate is 50%, they valuation of their shares would be 8million dollars. They are currently receiving $240,000 annual dividend with those preferred shares. It would take 8 years of holding these preferred shares to break even on what is owed them today. Having said that, in order for it to make sense for them, the selling of common shares would have to be introduced into the calculation. Knowing that they would hold so many common shares at a full conversion, this means they had confidence either based on what the company had told them and backing it up with proof, or they are extreme risk takers. I have never known someone who loans money to be extreme risk takers so that means more than likely, they know something others don't which would prompt them to accept a restructuring of debt. This is key in understanding what GNCP did with this long term debt.

[stoprun]

Thanks and much appreciated, I feel better now, if we just get that PPS going forward now, with no thanks to the MM's. Good Luck!!!!!!