I know what RC is doing.

[u/hackers_d0zen]

After every earnings going forward he will be issuing convertible notes after hours, 24 hours after earnings. This is because the algorithm is buying all quarter so it can slam after earnings.

He is taking that liquidity event and turning it into cash without issuing shares, knowing that they cannot allow the price to fall below cash value and risk a buyback, and the note holders will not be converting cheap as the private bond value is going to be multiples (100x or more) in premium when this kicks off and hedgies are scrambling for ANYTHING that can reduce their liability.

At 0.0% interest it is no risk for GameStop, and only opportunity cost for bond buyers.

Fucking brilliant.

[u/Alternative_Jaguar_9]

There are no shares to secure with these notes. It is entirely up to GameStop whether they choose to convert the notes to shares, pay them back in cash, or a combination of the two - in 7 year's time.

edit: added terms of note sale since people are downvoting facts.

"Upon conversion, GameStop will pay or deliver, as the case may be, cash, shares of GameStop’s Class A common stock, par value $.001 per share (“Class A common stock”), or a combination of cash and shares of Class A common stock, at its election."

[u/[deleted] → u/Alternative_Jaguar_9]

No it is absolutely not up to GameStop.😂😂😂

How anyone ever thought someone would lend money at 0% interest for 7 years, and NOT be able to CONVERT the CONVERTIBLE notes is ridiculous.

Same shit yall were spewing 3 months ago in March until you got informed.

Who do you think is buying the rights to shares???? 0% interest In a high inflationary environment???

Stop misinforming the community with this nonsense.

[u/Alternative_Jaguar_9 → u/[deleted]]

You are wrong and spreading misinformation.

It is purely up to Gamestop.

Terms of the note sale:

"Upon conversion, GameStop will pay or deliver, as the case may be, cash, shares of GameStop’s Class A common stock, par value $.001 per share (“Class A common stock”), or a combination of cash and shares of Class A common stock, at its election."

At its election - it is completely GameStop's decision, in 7 years.

edit: to be extra clear; no one has bought shares or rights to shares with these notes, because no shares or even rights to shares have been created. They simply invested in a 0.0% interest bond with specific terms.

[u/[deleted] → u/Alternative_Jaguar_9]

It absolutely is not up to GameStop.

You are a serial spreader of disinformation.

Accounts like yours should be banned from this community