Implant Sciences Corp. Message Board
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Convertible shares/Shares Outstanding dilution
So, with current deal, $12 million debt converted to shares at $1.09 = approx 11 million shares added to current outstanding shares of 33 million = ~44 million shares outstanding....is this correct?
Does this current deal essentially wipe out the .08/share price conversion point, resetting it to the latest $1.09 level?
Or, is this 'in addition' to the shares that are/were convertible at that .08/share conversion point?
If this is 'in addition' to, does anyone recall how many shares are/were convertible at the .08 price point?Sentiment: Strong Buy
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Very good question. I was just reading the lastest 10q from March and it is very tough going trying to determine the conversion share count if all converts are exercised.
Item 13 on pages 13-18 deals with "Debt and Credit Arrangements". It is extremely confusing. However, in Item 12 they have a chart that lists the "common stock equivalents excluded from the earnings per share calculation for the three and nine months ended March 31, 2012 and 2011" and as of March 31, 2012 it looks like there are an ADDITIONAL 63,003,131 shares(additional to the 34,474,665 shares outstanding as of the end of March 31, 2012).
From what I can tell that means any valuation of IMSC needs to add the 63 million shares to the 34 million shares to get 97 million shares outstanding, after all dilution - which is surely coming regardless of how successful they are in selling sniffers.
I would welcome corrections to this if I have it wrong.- 1 Reply to brennonvc
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I came to roughly the same conclusion. but one minor detail..you need to add in the 11 million shares at 1.09 as announced today..so roughly 108 million shares outstanding.
regards
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It appears it is addition to the .08 shares. While it does remove half the debt overhang, you need to add 11 million shares to the roughly 60 million shares that are convertible at .08.
so fully diluted market cap is approximately 140 million.
good news..but factoring in the dilution, many longs may need to rethink their price targets. -
Detailed information on additional terms of the extension can be found in the Company's Current Report on Form 8-K, which will be filed with the Securities and Exchange Commission by September 11, 2012.
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Call the office, very good question but I doubt if anyone here can answer it.
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