The Company is faced with having to issue a number of shares to the debt holders. The choice of the Company is to come to an understanding with the debt holders that minimizes the dilution for all shareholders. However, the debt holders have the right to accept or not accept any proposal. The winning of the grant greatly strengthens the position of the Company." -------------------------------------------
We know they HAVE to pay their debt, wouldn't want it any other way. Minimizing dilution is good, paying cash is even better seeing as shareholders are not anyone's private piggy-bank. But an appropriate amount of dilution for what's owed. One Billion shares is ridiculous, and a reverse split is just adding more insult to injury. I am sure the DOE doesn't want that kind of negative press for their chosen infrastructure grant recipient either.
IMO, they will get it worked out to the satisfaction of all, and then we can get past this and look forward to an amazing future as the new electric transport economy is rolled out.
The response was enough to get me to hold. Why does everyone want instant gratification. To the people that expect the company to make public its plans for restructuring, don't you think that might hurt their standing at the negotiation table with the debenture holders? This will ultimately be about compromise and compromises are worked out over time. I would not expect to see something before the shareholders meeting. Now I need to get the heck off this board so I can actually earn my living!