Again - you don't get it. If these technology works they are actually buying from themselves as SPI will make ZBB a roughly 75% subsidiary then through the conversion of warrants and preferred stock.
You do not get it. Outside shareholders are screwed by this deal either way. If their technology works SPI now gets the company on the cheap through the conversion of cheap preferred shares and warrants. Today's shareholders will be diluted to around 25% of their current ownership in the company. SPI will own close to 75% of the company after the exercise of warrants and conversion of preferreds. So everything they would buy from ZBB through this agreement would be effectively a purchase from their own subsidiary.
And if it works they are effectively buying from themselves as SPI now has the option to take control of the company for a tiny $35 mln
They bought nothing. They might buy something if it works out as agreed upon.
Given the deal structure SPI currently shows very little confidence in the final outcome as almost everything is based on real progress achieved by ZBB.
It just proves that SPI is willing to make a small bet for the small potential of giant returns. Their effective risk is just the $5.3 mln payed for the 8 mln shares.
SPI itself is a pretty shady company so this deal looks like a perfect fit.
Perhaps for ZBB but not for their current shareholders. IF (and this is a big IF) their technology succeeds SPI will make use of their right to take control of the company for a rather tiny payment of $35 mln and reap the profits of the new technology. If it doesn't work (which most should suspect) ZBB will be obliged to pay back $28 mln in preferred shares. So there's no way current ZBB holders can win here.
You must be joking. If their technology proves indeed successful SPI will be the big winner while outside shareholders get diluted by 92 mln share conversion / warrant exercise at around $0.70 on average. If their technology does not work they will be obliged to pay back the preferred shares.
stock has seemingly gotten ahead of itself given the terms of this agreement
Current share count: roughly 39 mln
Issued to SPI immediately 8 mln
Convertible Preferreds: 42 mln
Warrant: 50 mln
If the cooperation works as expected SPI will own 72% of ZBB for a pretty small purchase price.
stock would deserve a 25% haircut on reporting a giant operating loss instead of an expected profit but management's rosy (albeit shady) projections might save the day here in the end
they should rush to sell the business as long as there's at least some value in it. They are rapidly losing share to larger competitors, getting killed on margins and already rely on heavy cost cutting and sale and lease back transactions to compensate for cash flow losses.
What are you talking about ? This bond won't be issued, actually it will be paid back in full this week.
not just impairments, they recorded a giant operating loss:
Overall net loss: $26.7 mln
Goodwill impairment charge: $23.9 mln
Asset impairment charge: $2.3 mln
Severance charge: $0.5 mln
But they also recorded a $14.3 mln gain on the sale of certain properties.
So the operating loss for the quarter was a whopping $12.4 mln, or around $0.20 a share with analysts expecting a PROFIT for the quarter...
a giant loss for the quarter - management tries to sugarcoat this but I don't think analysts will buy it tomorrow
The agreement ends at the end of 2015 but the great days of tanker rates might be already over then. So there's really nothing to win here for FRO shareholders as usual.
The guy is the FOURTH CFO within two years...you might feel great about it but I think it is just another red flag with regards to fraud.
Everybody should short the shares on this totally worthless news. The company announced the much larger high speed train concession already six months ago and absolutely nothing happened to the share price,
Installing Wifi on ordinary trains for people who never even heard of wifi doesn't make much sense to me anyway
so why did they buy just 5% ? Doesn't make any sense to me - looks like the kind of transactions NQ Mobile undertook for some of its subsidiaries
while this might prove succesful short term it does not look like a smart move to me. If the brand has strength I would rather invest to build on it instead of cutting back on expenses just to grow the bottom line