The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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I'm guessing you mean in the form of a rights issue
Take IAG they had 8.2billion in cash reserves as of 31st july and are seriously considering rights issue for 2plus billion
Shareholder vote in sept.
Anything is possible in current times.
Desperate fear mongering by shorters...it is not even subtle
In another note, Sweden has apparently achieved herd immunity, UK may be next, followed by the USA possibly. Suffer the pain and get it over with already. There will be no second wave
I would suggest people research all points you are trying to sell.
"2. CINE recently renegotiated its debt position with lenders to prevent a breech of its covenants. These were raised from 5.5x to 9.0x on an EBITDA model which requires revenues to substantially increase in Q4 in order to cover the new ageeement or else they will breech again."
How did you come to the conclusion that raising the ND to EBITDA means the revenues need to "substantially increase in Q4 "? Surely more headroom means that they are less likely to breech? In fact the articles I could find quotes the company as saying:
"Cineworld expects that this additional liquidity, to the extent required, will provide it with sufficient headroom to support the group even in the unlikely event cinemas remain closed until the end of the year"
Also you mention that they will breech "again" yet I'm unsure which previous breech you are referring to.
tidd83- YAWN
There is nothing new here ... just regurgitated stuff
Get a life FFS
I have made a few objective but posts on here which have been shut down by a few dangerous and ill informed posters - some of which are still peddling ridiculous I’ll informed comments to all involved.
The main point which concerns me is the lack of acknowledgement for the dire situation CINE are in with regards to their debt position. To keep things simple there are a few factors investors must understand before listening to silly posts about take overs, AMC rose x so CINE should too (and the best one) - debt does not invest or interest private investors.
1. CINE will release its figures on the 21st August which will of course not make for good reading due to COVID-19. The market knows this.
2. CINE recently renegotiated its debt position with lenders to prevent a breech of its covenants. These were raised from 5.5x to 9.0x on an EBITDA model which requires revenues to substantially increase in Q4 in order to cover the new ageeement or else they will breech again.
3. Given point 2 is unlikely (new films are delayed until 2021, substantial reduction in seating required due to COVID rules, cinema goers will be required to wear face masks and so likely stay at home to stream films that can be seen in cinemas, PPE and sanitation will increase CINE operational costs but to name a few).
4. To satisfy this breech something will need to be done, it is without question lenders can’t keep increasing - as such they will likely request a debt for equity swap, or request the company issue a rights issue or placing to reduce the debt to reduce a large portion of debt owing.
5. The above will likely mean wipeout for existing shareholders, an increase in shares available at a potential huge discount to garner interest will dilute holders to nothing.
I strongly suggest point 5 is researched for those not involved as it is without doubt the likely conclusion to keep CINE afloat. This will occur sometime in the coming months ahead of a covenant test and not on/or after.
Good luck with your decisions.