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  • acorisk acorisk Apr 27, 2012 8:18 AM Flag

    Vision details and Impact on common holders

    As smaller common shareholders - we win when the investigation and future structure of the company clears up - either way (whether vision gets more shares or not -- see below for details). Vision really wins if they play hardball and get more shares. GAO may be able to keep some of this at bay... We'll see what happens, but I'm glad to be holding lots of shares & increased my holding on the recent dip.

    Everyone has an incentive (GAO and Vision) to clear this up and monetize the value. That's really good news.

    see next post for details.

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    • Thanks,phoenix_goa...:

      So good for longs right? Hahaha...(simply)


    • Prefs are the only convertible shares out and do not pay dividends.
      10K filed in March 2011 said 39,503 common outstanding.
      Highly unlikely any of the now expired $7 warrants were exercised.
      So only new common shares can come from $3 warrant exercising which is unlikely given the current trading price + pref share conversion.
      To get to 50 million common a minimum of $12 million cash would be paid to exercise 4.4 million warrants.
      I'm happy with that.

    • phoenix_goa...:

      <Issued common now 39,503
      Conv Pref A 4,495
      Conv Pref B 1,605
      Total 45,603

      Any additional shares will have to come from warrant exercisation at a minimum of $3/ share >

      Could you please explain simply? I still have no idea.

      Thank you, have a good day,

      --GLTA LONGS,

    • Issued common now 39,503
      Conv Pref A 4,495
      Conv Pref B 1,605
      Total 45,603

      Any additional shares will have to come from warrant exercisation at a minimum of $3/ share

    • 1.6 million shorts -- More than coincidence --- Only way vision can exercise its antidilution with the stock price so low, is to sell some shares to someone else, then reup. Someone else could have sold the 1.6 million short, knowing price they were going to pay to cover (by buying from vision). result would be profit for 3rd party, cash for vision (vision describes recovering about 11 of their 13 million investment (could be somewhat off, pulling from memory - but it's a big portion of their investment) and vision holding the same number of common as before the transaction due to the ability to "reup" to a level of a 9.9% holding.

    • From the language in the shares
      ----------------------------------------------------- --------------
      The 9.9% beneficial ownership limitation does not prevent Master Fund and VCAF from selling some of their holdings and then receiving additional shares. Accordingly, each of Master Fund and VCAF could exercise and sell more than 9.9% of our common stock without ever at any one time holding more than this limit.

      • 1 Reply to acorisk
      • This top up really is not that bad.
        Vision NY owns $9.9 million of Pref A's which is convertible at $2.20 or a new 4.495 million shares, then the Pref A's are extinguished.
        The Pref B's appear to equal the short position so effectively no new issuance, the shorts did it already.
        The warrants at the $3 and $4.40 exercise prices are WAY out of the money now so if Gao stands pat until October it is unlikely Vision will exercise the warrants.
        The risk for Vision and Gao is the SEC commences an investigation which may expose some dirty laundry (not saying there is any) that the parties would prefer remain quiet. The end result is we may be on hold till October but I do not think CBEH is hurting on the business front.