Mesa wants to issue more shares

[asa rat]

AP
Mesa Air Wants to Issue More Shares
Tuesday April 8, 4:56 pm ET
By Chris Kahn, Associated Press Writer

Mesa Air Group Will Ask Shareholders to Approve Up to $37.8M in New Stock to Pay Off Debt

PHOENIX (AP) -- With its $20-million-a-month Delta Air Lines contract in jeopardy, Mesa Air Group Inc. wants shareholders to allow the carrier to issue up to $37.8 million in common stock to pay off its looming debt.
The amount is more than the total market value of the Phoenix-based commuter airline Tuesday.
Mesa says in a securities filing that it will ask shareholders at the company's annual meeting May 13 to approve the plan to issue new stock so it can repay senior convertible notes in June.
Mesa offered the convertible notes in 2003 to raise $100.1 million. The notes aren't due until 2023, but holders can force the company to repurchase the notes on June 16, 2008.


http://biz.yahoo.com/ap/080408/mesa_air_group.html?.v=1

 

[Ezralite]

If anyone is housebreaking a puppy I recommend using Mesa stock instead of newspaper. It's cheaper.

 

[Salukipilot4590]

Boy am I glad I dont have money...I would be tempted to jump in on this s**tstorm...

 

[satpak77]

and if this does not get approved ?

 

[USCtrojan]

AP
Mesa Air Wants to Issue More Shares
Tuesday April 8, 4:56 pm ET
By Chris Kahn, Associated Press Writer

Mesa Air Group Will Ask Shareholders to Approve Up to $37.8M in New Stock to Pay Off Debt

PHOENIX (AP) -- With its $20-million-a-month Delta Air Lines contract in jeopardy, Mesa Air Group Inc. wants shareholders to allow the carrier to issue up to $37.8 million in common stock to pay off its looming debt.
The amount is more than the total market value of the Phoenix-based commuter airline Tuesday.
Mesa says in a securities filing that it will ask shareholders at the company's annual meeting May 13 to approve the plan to issue new stock so it can repay senior convertible notes in June.
Mesa offered the convertible notes in 2003 to raise $100.1 million. The notes aren't due until 2023, but holders can force the company to repurchase the notes on June 16, 2008.


http://biz.yahoo.com/ap/080408/mesa_air_group.html?.v=1

If I was a shareholder, I'd say I would authorize IF AND ONLY IF THAT DIRTBAG JONATHON ORNSTEIN were to step down WITH NO money, and no severence. He would get some Mesa stock as a reward .

Trojan

 

[piav8r]

F@CK Johnny O. May he die a slow painful death and rot in he|| for the rest of eternity!

 

[CoATP]

84% of the stock is owned by 89 large blockholders. Individuals have no say it's all "professionals."

Largest is Heartland Investors ... I wonder how many JO knows from his noteworthy wall street days.

Normally this is not proposed or announced unless it's sure thing. Gosh ---- I hope not.

 

[USCtrojan]

84% of the stock is owned by 89 large blockholders. Individuals have no say it's all "professionals."

Largest is Heartland Investors ... I wonder how many JO knows from his noteworthy wall street days.

Normally this is not proposed or announced unless it's sure thing. Gosh ---- I hope not.

The Board then should not authorize it, unless they have a successor in mind. Like I said, if it truly is the only course of action to save the airline, I would authorize it, if and only if their present leader is eliminated without any bonuses or severence. Take your salary and go. In good faith, issue him Mesa stock. He should be confident in it, for crying out loud. Dirtbag CEO has put it in the dumps.

Trojan

 

[V-1]

$37.8 million?

That's something like 37.8 million more shares outstanding.

I came very close to shorting Mesa heavily today...now I wish I would have.

 

[Ben Dover]

They know their shares will be worthless soon. So this act of desperation will likely be approved.

 

[go!ng for broke]

Does not someone have to buy it?? I mean would you buy it??

 

[Rally]

Mesa $ucks.

 

[No.W.]

I think making JO stepping down contingent would be a good idea...

 

[Soverytired]

Does not someone have to buy it?? I mean would you buy it??

According to the most recent Arizona Republic article about Mesa, Mesa can pay off it's $37 million convertible with either CASH or STOCK.

What a gyp! If accurate, I can't believe anyone would agree to that deal. YIKES!

 

[Max Powers]

$37.8 million?

That's something like 37.8 million more shares outstanding.

I came very close to shorting Mesa heavily today...now I wish I would have.

How do you short a stalked I probably shouldn't ask I've lost enough on single stocks but is there a way to on ameritrade or the likes.

 

[GOULET!]

At this pace, MESA stock will be under $1 by the end of the week.

 

[Rominato]

wow

At this pace, MESA stock will be under $1 by the end of the week.

Or, the end of the day...

 

[UND_Sioux]

It just hit $0.99. It is hovering at around $1.00. It's off 25% today.

 

[satpak77]

stocks need to be $5 or above to short, plus you need a margin account. MESA can no longer be shorted.

You might BUY whoever is the direct competitor to Mesa. You might also SHORT anyone related to Mesa, their food service provider, etc.

 

[skypine69]

MESA SUCKS....

has that been posted yet in this thread?

 

[Ezralite]

MESA SUCKS....

has that been posted yet in this thread?

You're the first, but not the last.

Mesa sucks.

 

[Rominato]

86 cents and falling...

Shares are tumbling out of the gate today... as I post they're sitting at $0.86. How much longer now for mesa?

 

[satpak77]

Shares are tumbling out of the gate today... as I post they're sitting at $0.86. How much longer now for mesa?

Soon MESA will not meet "listing requirements", discussed here

http://www.investopedia.com/ask/answers/121.asp

Basically, if they do not trade at above $5 for I believe the most recent 30 days, it can be delisted. This means trading is halted and no further investment can be made by investors via stock.

In other words, if MESA wants Big Company ABC to invest in them, the mechanism to do that is buy shares (for the most part).

In addition, a host of other problems exist when a company is delisted. It is much harder to propose something to the banks and justify loans, etc.

My personal opinion is that MESA is ceased operations, completely, hangars shut, planes parked, within six months, due to financial problems and stock market concerns, to include possible unknown behind the scenes red flags with the books. This is my opinion only.

If I am "wrong", then actually, great ! The industry does not need another bad headline in the papers. However I think I am not wrong on this one. (If so, great)