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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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51042316 No.51042316 [Reply] [Original]

>B-But it's ok to Diloooooooooooote
>It' will help us pay debt
>What do you mean it' didn't help us pay debts last time and we just lined our pockets

kek

>> No.51042353

>>51042316
Fuck AA he's why WANGMI

>> No.51042440
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51042440

kek

>> No.51042488

seething GME baggie

>> No.51042536
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51042536

>>51042316
AA is as slippery as the fake butter in his theaters

>> No.51042644
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51042644

>keeps dropping
oh no no no no no no AHHHHH HAHHHH HAHHH HAHHHH OOOOOOOOOOOOOOOOOOHHHHH

>> No.51042663

>>51042353
Never were.

>> No.51042668

>>51042440
not funny

>> No.51042794
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51042794

>>51042668
It's hilarious.

>> No.51042884
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51042884

>>51042316
so looks like APE is basically a perpetual "reverse" call on AMC shares, which means it's going to price like one. it seems blatant, but i guess the simplicity of it is the catch. he seems to know r*dditors will make up their own story about why it's good for them to hold.
so nig-scholes lets companies get away with murder when they expense options but aron won't even be subject to that because he used a convertible preferred to fuck shareholders instead, no immediate balance sheet damage. it will literally just time-decay; the company is losing money faster than it did in 2021.
converting pref to common is 1:100 (and yes there is an anti-dilution adjustment clause so that if they double the outstanding common shares, this ratio doubles to "preserve their value" lol) so if the commons head to $10 (they're pretty close to that today) then 100 shares is notional $1000 but remember that's $1000 at an infinite future date -- so NPV of basically nothing because this is the same as promising actual operating results while not even delivering positive gross revenue, like AMC last year -- and there is no provision that AMC has to buy the commons in the market to complete conversions. it's like holding a call that you're not allowed to exercise and even if it does, you get newly minted shares. so, dilution. he tacked on dividend protection and VOTING RIGHTS lmao preferreds almost never have these, the only reason they're there is because aron knows its worthless to begin with, vote all you want over the operation you can't force it to make money.
i almost said the apes probably thought these would price at $995 or something like that but lmao that assumes they even knew what they were getting
whew
we live in interesting times

>> No.51043980

>>51042316
I am going to have to eat a lot of free popcorn to make up for this loss.