There is no financing plan or it would have been disclosed to shareholders yesterday. Major restructuring is going to take place leaving shareholders penny less.
failure to do so is a criminal offense
The game is over...death spiral has begun
They have some great assets...unfortunately they have terrible financial controls and management....
The lack of disclosure on a major material event is criminal
SFXE is horrible all around
If that can be annualized at $50 million in revenue and given a 5-10 internet like multiple..there could be a hidden asset here.
SFXE is afraid to announce the news as the illusion that is their stock price will be gone.....
now that is settled lets go buy something with other peoples money and f it up bad.ha ha
call them and tell them what a great job they are doing for shareholders
That is the only thing that can save this. Sillerman should have to forfeit all his stock back to the company and the CFo and other insiders who are inept and ruined the company should also have their shares canceled. This way the debt holders and the real shareholders who paid for their stock and lost millions will be repaid.
After the stock slid from $13 to $4 they realized they had ineptly leveraged a company without enough EBITDA to justify its stock price and adequately fund operations. He created this BS buyout scenario to try and see if any additional parties would be interested in saving his #$%$. The company with its press releases and BS jargon perpetuated the fraud even Monday with their " the merger will be completed in the fourth quarter rhetoric." He should be investigated. He did some shady #$%$ similar to this when he fooled Blackstone into buying CKXE after his merger try failed.....such a joker....Some decent #$%$ets in the festivals and even Beatport makes money..but too much debt and self dealing to overcome.
The festivals are great. The concept was at the center of a huge growing market. However, the company was leveraged by a bunch of greedy, self dealing slime balls from Goldman Sachs and Robert Sillerman, one of the most untrustworthy and slimey people in business. They were so inept they couldnt even generate positive EBITDA while the took on $300 million in debt...such fools....
and Pr announcement forthcoming.....very dubious
SFXE has 97 million shares outstanding/ at $2 thats roughly $200 million mkt cap. They have $316 million in Lt Debt and payables. Plus $35 million owed to earn out promoters. Thats about $550 Enterprise valuation less the $50 million in cash and you get $500 million. They have estimated EBITDA of $50-$60 million but so far costs have been too high to achieve those numbers. 10x EV at best case scenario....its more likely they wont be able to rasie additional capital with stock under $2-$3 so the equity will be worthless....
All thos Goldman Sachs guys at the company and they cant even create a business model that works
the stock price is telling you the game is over...stocks dont fall for no reason...people inside know he cant finance this and now the selling begins