1. A "binding agreement" with a Toad for $10M for 10% with 3 expired deadlines; to
2. A counter-offer with the Toad on substantially lesser terms with 2 deadlines; to
3. "Advanced discussions" with a deadline of this Friday (with cash running out before the end of March).
Each option that the GMC considers is worse than the last one. These "advanced discussions" are almost certainly going to be on worse terms than the counter-offer from the Toad that was rejected. (His offer was very likely only rejected because GMC are desperate for cash and he missed the deadline with his reduced offer and GMC simply don't have time before they are out of cash).
The party to the CR will see the desperation in GMC (anyone that opens up their quarterly report in December will see this). They will hold the bargaining power and will hold GMC to ransom.
As for the 25% discount to the suspended VWAP, this is very easy to get around. If I was the SI, I'd simply say ill purchase it the minimum of:
Price X (which I'd stipulate at say 1.5c); or
At a 25% discount to 15 day VWAP following the lifting of the suspension.
Guess what happens upon trading - price drops to whatever price the SI sets.
Management may have thought they are smart suspending trading, but it will not help them inflate the price of the CR. We are at the mercy of the SI now. Don't be naive to fool yourselves otherwise.
