No, the $6.8 million EXCLUDES the leases.
"Such estimates do not include any claims or demands which may be made by the landlords of the impacted stores for unpaid rent or otherwise."
I cant imagine that all their leases can be easily walked away from. If they have 4 years left, they are expected to pay the rent for 4 more years. Or maybe negotiate a slight discount for cash in advance.
A bankruptcy, on the other hand, solves the old lease problems.
Cant imagine current shareholders getting anything if the malls don't get paid.
Its probably going to be some kind of pre-packaged bankruptcy where new money gets control and nobody is going to put in new money if they are going to have unknown lease liabilities.
90-99% shareholders get nothing. Or they get a warrant that's WAY out of the money that its effectively worthless.
Biglari has been making a lot of moves that seem questionable at best from a shareholder value perspective.
Its not unreasonable to question his motives with the more recent moves.
Ive been with Biglari since a few days before he took over WSZZ. And then bought a lot more SNS after he started buying.
So Im not a johnny come lately.
Sure looks to me like his recent moves are highly questionable.
Just like some of his past moves.
If the 4 owned properties do not sell for what they expect.
There will be hefty management fees for the new guys so their incentive is to increase assets under management moreso than per share value.
Ideally, it will be a win all the way around.
But, I don't see any reason for the shares to go to $1.40 anytime soon.
But it could.
We need to think of it in terms of the price after the reverse split. $10.60. With the $14 warrant that benefits but does not obligate mgmt.
I guess much depends on the proceeds of the properties, which Im hoping will not be below the $1.40 but if it is, the rest of us eat the loss, not the new guys. And, best I can tell there isn't really any incentive if they bring above their expected value.
So we will end up with a brand new REIT. They could probably do things which would benefit themselves more than paying $1.40 for $38 million worth.
So they could sit on that warrant for years if they wanted.
Hard to know what will be here in 2-3 years from now or where the stock price might be.
You have to think an NYSE listing for a reit with experienced mgmt is worth something...at least to the managers.
I will probably just hold my small position for years to come. Or maybe sell it from my taxable acct and buy back in my IRA.
I see no need for the shares to jump to $1.40 at least until we see what the new guys will do.
The impending split is at least a mild negative.
They also got warrants to buy $38 million more a $1.40 which, it could be argued is worth 30-35 cents per share.
Thus, the current price of about $1.06. Been a long wait here. I was afraid to buy more.
Seems like a good deal for both sides. We don't get diluted too bad and they get a public shell for no premium.
With their contacts, they could have big plans for this little company.
But, I don't think its going to jump overnight. And you wonder if they really want a $1 stock ?
Might a reverse split be in their minds ?
Got the proxy Saturday and will read it soon.
My position is very small here.
Will be interesting to see if they start buying in the open market after the deal closes. They don't really need to. But they could.
Would seem like they would have to do another extension soon unless the property sold.
EDCI Holdings, Inc. Announces Approval of the Extension of EDCI’s Existence
Dec 19, 2012
OTC Disclosure & News Service
New York, NY -
NEW YORK, (Wednesday), December 19, 2012 /OTC News & Disclosure Service/ -- EDCI Holdings, Inc. (the “Company” or “EDCI”), today announced that the Company has received approval from the Court of Chancery of the State of Delaware for an extension of EDCI’s existence beyond January 25, 2013. The extension is effective through Jan 25, 2015, or such earlier date as all the assets of the Company are distributed, and subject to further extensions as may be requested and approved.
Looks like that $1.18 includes liquidation accuruals. They had the property on the books for $5.4 million but included $1.2 million so I think that's a net $4.2 million.
But, they said they were expecting about $50k per month in carrying costs. which I guess their entire $1.2 million is used up by now.
Whoever bought at the close on the 31st was painting the tape clear as day. 10k at 90 cents.
Still, I think we could reasonably end up with $1.10-1.25 per share. Whenever.
Assets Held for Sale as of September 30, 2012, consists of EDC’s Kings Mountain, North Carolina facility (“Kings Mountain Facility’), which formerly housed EDC’s U.S. manufacturing operations. EDC has listed the Kings Mountain Facility for sale since the second quarter of 2009 and is currently unable to predict when a successful transaction involving the sale of this facility will occur. Annual carrying costs related to maintaining the Kings Mountain Facility in a condition to be sold are estimated to be approximately $0.6 million. Given the continued uncertainty with regard to the timing of a successful sale transaction, EDC increased its accrual for carrying costs related to the Kings Mountain Facility by $1.0 million in the third quarter of 2012. As such, $1.2 million of carrying costs remain accrued as part of the liquidation accrual as of September 30, 2012, which represents approximately two years of carrying costs.
At the time, the share count was 5,929,123.
That's $1.18 per share. Less ongoing expenses if they were not included. Not sure how much of that was the property and how much was cash. Maybe I will look more later ?
Form 4 BIOLARGO, INC. For: Dec 30 Filed by: CALVERT DENNIS P
It appears Calvert "gave away" 550,000 shares on 12/30.
Gee, if I lived next door and he let me short 550k shares at say 40 cents, Id be happy to give him $100k or so in exchange for his "gift".
And that, ladies & gents, is how Insiders can sell without reporting their sales.
Heads they win, tails you lose.
Item 3.02. Unregistered Sales of Equity Securities.
On December 19, 2014 Millennium Healthcare Inc. (the "Company"), in accordance with the terms of a warrant agreement entered into on December 19, 2014 (the "Agreement'), agreed to issue 3,250,000 shares of common stock in exchange for a warrant that had been issued on February 21, 2013 and was initially exercisable for 1,000,000 shares of common stock at $0.50 per share. The original warrant was cancelled immediately upon issuance of the shares of common stock. In addition, in accordance with the terms of the Agreement, the Company issued a new warrant exercisable for 3,000,000 shares of common stock at an exercise price of $0.16 per share (the "New Warrant") in exchange for a warrant that had been issued on February 21, 2013 and was initially exercisable for 1,000,000 share of common stock at $1.00 per share. The terms of the New Warrant are similar to those of the prior warrant other than numbers of shares underlying the warrant, exercise price and the elimination of the price protection anti-dilution provision.