Another great post but it’s important to emphasize that this was a fraud with a potentially enormous asset. So the main point of luck was that the fraud was uncovered, hopefully, with enough time to avoid complete dilution of the asset. When the $100M went away the risk crept back into the investment. Many of us tried to argue this point while others chose to convince themselves that more equity in AMC was worth giving up the upfront payment. Silly.
The reality is that AMC could issue another capital call tomorrow with “cram down dilution” similar to the latest call and the common shareholder would be left with nothing. AMC and friends ownership of 500M+ shares is the only reason why we aren’t at zero now. We were obviously led to believe that our ownership in AMC was non-dilutable, but like so many of the previous, ever changing, contractual terms, that turned out to be another lie. Why wasn’t this fact disclosed? I have to assume that all of the MDMN insiders read the contract and is exactly why all of them are just as guilty as Les (in one way or another).
I earlier gave AMC a valuation of $20Mish based on the cash call. You can reverse engineer a valuation based on the dilution ramifications of a capital call. Without Kevin’s negotiation I believe we would have lost approximately 80% our ownership in AMC. CDCH us still in the thick of it. I would encourage investors to voice or email their thoughts to their BOD who needs to do everything in their power to reach an equitable solution. This is a cram down capital call. Make no mistake about it. Until we get through this mess and both MDMN and CDCH cease to exist (through issuance of AMC shares) there is a lot more than geological risk to these stocks. The market is discounting the same.
Trying to argue that we should “go it alone” as long as possible as a separate public entity is truly insane if you actually understand the underlying risks. IMO