hillfronter83

https://www.zerohedge.com/markets/shot-themselves-foot-amc-messiah-mudrick-battered-bad-options-bet

Anyone looking at HTZGQ? The equity holder will receive $1.53/share cash, about $0.91/share in new equity (3% of equity), the rest is in subscription rights or 30-year warrants. The approval meeting is scheduled for 6/10/2021 and it's the deadline to elect either subscription rights or warrants. Its competitor is CAR, which is trading at market cap of just over $6 billion. It has total debt $10.6b ( fleet debt of $6.2b and corporate debt of $4.4). Both companies have about similar sales in Q1 2021. I couldn't find good information regarding emerged Hertz debt situation except they say there will be $1.5b preferred and $1.3b term loan facility. See this: https://www.sec.gov/ix?doc=/Archives/edgar/data/47129/000110465921066944/tm2116104d2_8k.htm Market is discounting the warrant valuation by over 30% ($3.76 vs $5.56) to the valuation given by plan sponsor.

WEB literally had two wives at the same time:)

Yes, initial documents were sent on time and IB told it seemed fine. But I didn't receive any additional registration documents. Not sure how the additional documents will effect the participation rights. I'll see what IB comes back with the reason for rejection.

After GTXMQ.TEN3 showing in my account for a few days, yesterday IB informed me that the company rejected my AI participation and returned my cash. They haven't given me a reason yet. These thieves are trying really hard to keep as much preferred for themselves.

I think premium for series A preferred over common makes more sense in the bear case scenario due to seniority and PIK coupon. Because of likely automatic conversion in 2 years, the premium will likely disappear if common trades close to BAW multiple. But you can't do both since you can't tender and subscribe for preferred. As wabuffo pointed out, there is very thin liquidity and shareholders only have the option to tender at $6.25 if they tender the whole position. So this buy and tender option is only available for small fishes. At $4.5/share, it's almost a no brainer since you are basically buying common at close to 50% discount to preferred. At $5.2, the discount is 20% so about two years of coupon payment.

Sorry, my language was confusing. I meant buy shares at $5.2ish now and tender shares you already own before record date: So if you buy 2 shares now and tender 1 share you own (before record date), you will own two common after reorg by paying 2X5.2-6.25=$4.15 additional. Or you can subscribe for preferred paying $5.25 to own 1 common and 1 preferred after reorg. Thoughts?

At current price, is anyone considering buying stock and then tender the share at $6.25? For retail investors, you can own 2 common shares by paying additional $4.15 ( buy two shares at $5.2/shr then tender original share at $6.25) or own 1 common and 1 series A preferred by paying additional $5.25. In another question, how much more does one preferred share worth than common?

I didn't sell any shares but bought a few more shares when price came down. I hope this doesn't disqualify my ability to tender or participate in the right offering. However, now IB is showing the total number of shares as eligible to participate in offering(at least on the surface). I suspect this will be a nightmare for all the brokers and their systems to figure out which shares have which rights...

IBKR's service is getting worse over the years. The trading restriction for OTC stocks because they think you are an affiliated shareholder is getting ridiculous: first they flag you as an affiliated and restricted the trading; then only the compliance personnel can remove the restriction (not the service guy you get on the phone); and when you submit a ticket you are ignored; at last when the restriction is removed, it's only for two weeks and you need to repeat the steps again!

RMBL is merging with RideNow. The stock is valued at $30/share for the transaction. At current price of around $50/share, it's trading at about 8 times projected 2021 EBITDA.

You can use their message center for corporate action: Client Service->Message Center->Compose then choose "Reorg or dividend". It usually takes one business day.

GME Q3 10-Q indicates 300m share authorized. Does that mean company can issue about additional 230m shares without needing shareholder approval? But why would you issue at 50% discount instead of 50% premium when shorts are desperate?

Note that GME filed to issue up to $100 million in new stock on Dec. 8th. I think Gregmal was postulating whether they were doing this, but an ATM would be perfect to execute. Question is whether Jefferies is able to sell it to any institutional buyers, given the insanity going on at the moment. Would an offering by GameStop be a betrayal? The emotional narrative underlying the WSB-GME story is that GameStop is semi-beloved piece of childhood nostalgia that would be revived by Ryan Cohen but for the depredations of Wall Street hedge fund types (the shorts). In other words, the jocks are once again picking on the nerds. So, the nerds are fighting back against the jocks (Wall Street, hedge funds, etc.) by trying to corner the market for GME shares and thereby crush anyone who is short and has to deliver the cornered shares. Corners are broken by new supply. So how would it look for GameStop itself to break the corner of its erstwhile supporters by creating additional supply of shares through an offering? Arguably the board can destroy shareholder wealth (market cap) by creating shareholder value (intrinsic value of the company), lol. So what should be their fiduciary responsibility in this case?

What prevents company issuing more shares to retire debt? I guess it probably won't add value to "shareholders".