Debt Restructured?8 Oct 2020 10:59
Perhaps someone from this group can help me decipher the "debt Restructuring" announced by the company. having looked at that what I see is the following;
1. The company was unable to repay its debt which was already extended once.
2. The major shareholder who initially guaranteed the loan, therefore, had no choice but to repay the loan and in return has been granted in total 27.5 million shares for free. Those are worth 11.35 million dollars.
3. In order to replace a 13.5 million loan the major shareholder is getting 11.35 million in cash plus interest of 1.3 million per year plus fees. So in one year, he is been getting the full loan back but the company still owes him 13.5 million at a ridiculously high-interest rate.
4. This "drill" seems to be repeated every year with the major shareholder getting more and more free shares.
5. At the same time he spends some money in "keeping the share price high".
6. its very nice that the company has a large supportive shareholder but he sems to be lowering his average share price all the time preparing fr the day the shares will fall to their true value.
7. what wil lall the suckers who bought the shares basen on its "supported level" do when that happens?
does it smell like rot to me only?