NZF Group (NZF and NZF010)

[minimoke]

I created a Google Docs spreadsheet last year when I looked at NZF010 in the expectation that they would be converted to shares.

By my calculations noteholders should end up with ~65% of the company if none decide to renew.

I have set it so that anyone can view and edit it. So feel free to play around with different share prices or estimate figures or even improve the model. It factors in the 5% discount.

https://spreadsheets.google.com/ccc?...thkey=CN2h8PkC

Disc: I didn't end up buying any

So, if existing shareholders want to retain control of their company (assuming they aren't already bond holders) we are going to have to see the SP move to $0.30. So buying now at $0.18 could be worth a punt. Even buying discounted bonds and ordinary shares now might be worth a punt. Trouble is owning x % of not very much may not be a good move.

[Enumerate]

So, if existing shareholders want to retain control of their company (assuming they aren't already bond holders) we are going to have to see the SP move to $0.30. So buying now at $0.18 could be worth a punt. Even buying discounted bonds and ordinary shares now might be worth a punt. Trouble is owning x % of not very much may not be a good move.

The other scenario is:

Those that don't elect to take up the new deal will simply be paid out in cash (if the company decides it does not want the dilution and acts before the 1st of March to pay those who have not elected to proceed with the new deal).