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Finjan Holdings, Inc. Message Board

  • hoggey1 hoggey1 Jan 30, 2009 12:46 AM Flag

    Advantage COIN

    IMO, congratulations are due to Ed Gildea and the shareholders of Converted Organics because it looks like the Amendments to the $4.5 million secured convertable debenture now favor the company and the common shareholders over the debenture holders.

    Under the previous terms of the loan, it appears the debt holders had the advantage over the company and the common.

    http://biz.yahoo.com/e/090129/coin8-k.html

    Prior to the Amended terms of the loan, the convert holders had the choice to

    1) convert the $4.5 million debt into common shares at $6
    2) receive a $4.5 million cash repayment
    3) in the event of a default, the $4.5 million debt could be converted into discounted common shares, at 70% of the 3 lowest closing prices for the 20 trading days prior to Jan 24 due date.

    4) In addition, it appears the Gonzales facility was secured as collateral to the debenture.

    So had COIN defaulted,the debt holders could force the company to issue about 2 million shares (my estimate based on 70% of $3.14 for a $2.20 conversion price). That would give them about 30% of the common.

    And since the loan was secured, it's possible the debt holders could force liquidation of the plant and equipment at Gonzales. However, I'm not certain terms of the loan would allow for both the default rate of conversion and a liquidation sale as repayment.

    Certainly the liquidation of Gonzales would not be beneficial to COIN or the shareholders - including any debt holder converting into the discounted shares.

    Now under the Amended Terms:

    1) There is no default. That's significant for COIN since these convertable debentures are secured.

    2) If COIN tried to raise $4.5 million through a secondary offering, under current market conditions, the company would most likely be forced to sell shares at a deep discount to the current market price (likely a 25% - 30% minimum discount). In addition to selling discounted shares, COIN would probably be forced to attach warrants to the common as a sweetener. So I believe COIN (and the longs) greatly benefit under terms of these amendments.

    Even though the debt holders can acquire deeply discounted shares of common, it's really no different than terms of a secondary under current market conditions. And the terms of the discount to the bond holders, are actually better for COIN since there are no warrants attached to the conversion.

    Also, it looks like the debt holders intend to convert and sell shares based on the terms set forth in item number iv of the Amendments to the loan.

    However, if their goal is to convert and sell to get their $4.5 million (and more with gains), it's not likely they'll seek to convert and sell all $4.5 million at once - unless the shares are considerably higher. In other words, we're all now sitting on the same side of the table. The convert holders share the same goal as the current common shareholders - A HIGHER SHARE PRICE.

    That's extremely important and beneficial to COIN's common shareholders because we're no longer at odds with the convert holders. IMO, these guys no longer have any reason to suppress the share price. I certainly wouldn't want to be out short now that we've come to these terms with the convert holders.

    3) COIN gets the benefit of a 6 month extension to the loan. By then I'm confident the company will be generating sufficient cash flow to pay off the loan. Of course, that assumes the loan has not already been repaid by converting the debt into common shares.

    4) That bogus lawsuit filed by General Cheeseburger and his 59 accredited investors no longer makes any sense - not that it ever did, except as an attempt to manipulate the PPS lower for the January 24, 2009 due date.

    Again congratulations to Ed Gildea and the COIN shareholders. IMO, this is a great deal for COIN.

    Just my opinion.

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    • The Ryderliar continues to post completely irrelevant material that has absolutely nothing to do with COIN.

      The ryder Troll posts utter nonsense that's part of his 24/7 campaign to spam this board. So by definition the ryderliar is a TROLL--

      http://en.wikipedia.org/wiki/Internet_troll

      By definition--

      "An internet troll is someone who posts controversial, inflammatory, irrelevant or off topic messages....

      While the RyderTroll posts volumes of nonsensical posts, he also tells lies and is deceitful in his posts. He spreads misinformation and propaganda throughout the message board. And he works to discredit anyone posting substantive commentary - going so far as to copy their ID and mock their commentary. In fact, he'll do anything to discredit anyone who posts commentary that is relevant to COIN.

      However, it's the content of the message and not the time of the post, as the rydertroll claims...that in fact, defines a troll. And since he offers nothing of substantive value to the discussion on Converted Organics, it should be obvious that ryder is here to disrupt the dialogue.

      For anyone new to the board, here are a few things to consider about this grifter known as ryder --

      1) The more on point the post(s), the greater ryder's efforts to disrupt the dialogue. That's the first clue that the topic may contain substantive information of use for your due diligence on COIN.

      2) The more posts ryder makes in the thread to disrupt the discussion is a second clue that the topic may contain useful information. It should be obvious to anyone seeking to inquire about COIN, that ryder doesn't want there to be any substantive discussion on COIN. And he doesn't want anyone to share substantive information or opinions that might qualify as due diligence.

      3) The more IDs the ryderliar Troll uses in the thread to disrupt the topic of discussion, the greater liklihood the topic contains a discussion from contributors posting substantive commentary.

      While some recommmend ignoring the ryderliar Troll, be aware that he already has dozens and doznes of IDs and continues to create more IDs to avoid being ignored.

      And be advised that the greater his efforts to disrupt a particular topic of discussion, the more likely that topic or discussion contains something of substantive value to those interested in COIN. Likewise, the more he spams the message board with his stupid, irrelevant posts, the harder he's trying to hide something of due diligence value.

    • The Ryderliar continues to post completely irrelevant material that has absolutely nothing to do with COIN.

      Obviously, he posts utter nonsense that's part of his 24/7 campaign to spam this board. So by definition the ryderliar is a TROLL--

      http://en.wikipedia.org/wiki/Internet_troll

      Ryder = THE TROLL

      By definition--

      "An internet troll is someone who posts controversial, inflammatory, irrelevant or off topic messages....

      By definition--

      That's ryderliar. Ryderliar U R The Troll.

      It's the content of the message, not the time of the post that defines a troll. And since he offers nothing of substantive value to discussion on Converted Organics, it should be obvious that ryder is here to disrupt the dialogue.

      For anyone new to the board, here are a few things to consider about this grifter known as ryder --

      1) The more on point the post(s), the greater ryder's efforts to disrupt the dialogue. That's the first clue that the topic may contain substantive information of use for due diligence.

      2) The more posts ryder makes in the thread to disrupt the discussion is a second clue that the topic may contain useful information. It should be obvious to anyone seeking to inquire about COIN, that ryder doesn't want there to be any substantive discussion on COIN. He doesn't want anyone voicing their concerns; he does not want anyone asking any serious questions; and most of all, he does not want anyone to share any substantive information that would qualify as due diligence.

      3) The more IDs the ryderliar Troll uses in the thread to disrupt the topic of discussion, the greater liklihood the topic contains a discussion from contributors posting substantive commentary.

    • Big Bird, here's a little advice: quit sniffing glue and snorting crank, you're having a hard time focusing.

    • You should change your ID to I_am_Wrong_again

      Here ya go, Wrong_again, the cash came from the redemption of warrants ....You should read an SEC file or two once in awhile and you won't look so foolish all the time.


      The Company believes that approximately $6.1 million received from the exercise of some of its class A and class B warrants will provide sufficient working capital during the remaining construction phase and will allow the Company to provide working capital to meet the needs of the organization through the end of 2008. [[[[The Company had identified specific items that would require additional uses of cash and the Company therefore decided to redeem its Class A warrants to specifically fund changes to the initial design of the Woodbridge facility ($4.5 million for the additional product line and HTLC technology), to fund the completion of the build- out of the Gonzales facility, to repay our January 24, 2009 convertible debt of $4.5 million (if the debt is not converted )]]]]] to repay its short-term notes of $375,000 due December 31, 2008 and to provide working capital requirements after December 31, 2008.

      The Class A warrants became eligible for redemption on February 19, 2008, when the closing price of Converted Organics common stock had equaled or exceeded $9.35 for five consecutive trading days.

    • The restricted cash are NJ bond proceeds restricted to finishing Woodbridge, darling.

      Good deal interest paid in stock not cash. That means shareholders paid it. Woof woof har har

      Please change your pic. It hurts my eyes.

    • Restricted cash of 4,607,721 ...now I wonder what that was restricted for?

      http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6261421-7945-15771&type=sect&dcn=0000950135-08-007416

      As for the 200k shares that they paid in lieu of interest it is the same exact amount as the 450K cash interest for a full year on the 4.5 note.

      So what they paid interest in stock instead of cash.

    • Dumb enough to be Haberman and probably are.

      How would you know they could have had any cash and didn't take it? Notice any free cash on the last balance sheet issured before some more months of expences?

      Bondholders did not have option to demand cash!

      Interest Free> Gimme a break. On the day of the deal those 200,000 shares were worth in excess of $600,000. That is almost an interest rate of 30% per annum for six months.

      Ryder

    • <<Anyone who doesn't believe in the Haber-troll is a fool.>>

      Must be that silly ol' wabbit

      ======

      http://www.youtube.com/watch?v=VvfXvW2wsuQ

    • Let me try again.

      Bond holders did not want cash or they could have taken at least a partial payment....1,2,3 mill or 4.5total. NOT only did they not take partial payment but they also took the 200k shares in lieu of interest. These actions do not look like actions taken out of desperation to get their money back.

      This was structured so that the bond holders get the maximum amount of shares....

      1) can convert for maximum shares due to the low PPS. (after conversion they will cover IMO)
      2) 200K in lieu of interest

    • How believable is it that more than one poster was busy posting away between 2AM and 6AM very early on a Sunday mornig.

      Anyone who doesn't believe in the Haber-troll is a fool.

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