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$GTXMQ: a word on the record date

Posted March 11, 2021
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First, nothing on here is investing advice. GTX is emerging from bankruptcy. Please do your own diligence.

I've mentioned GTX on here several times; I originally published the thesis publicly, but I did premium only updates on it in late October and mid-January. It was a good thesis, and it worked out well.

I wanted to do a fast post because I am getting inundated with emails from people asking about the GTX bankruptcy and how the process plays out. While I'm relatively up to date on the docket, I still have tons and tons of questions about how everything will ultimately play out.

Still, I wanted to do a post to highlight one thing: the record date for the plan is March 15 (see this 8-K). There are two options for people who hold through the record date: you can either cash out at $6.25/share, or you can roll your equity and participate in the rights offering for the preferreds.

My understanding is that, in order to participate in the rights offering, you have to be an accredited investor (per the 8-k, "In addition, certain subscription rights in the Rights Offering may only be exercised by holders who qualify as accredited investors. Any holders that are not accredited investors will not be able to exercise these subscription rights, even if they are holders of the Common Stock on the record date."). With shares trading above the $6.25/share cashout price, clearly the market is putting value on those rights.

Again, I am not a financial advisor, and this is not financial advice, so please do your own diligence (here's the court docket to get you started). I very well could be off on how non-accreddited investors will be treated in the rights offering. Things can change!

So don't take my word on it. Do your own work. But, given the amount of emails I'm getting on this, I know there is a lot of interest here, so I just wanted to make sure that everyone was very aware of the record dates and the requirement to be an accredited investor to participate in the rights offering.

This is the last time I'm going to mention Garrett publicly, though I will be doing a smaller premium update including it in the next day or so on it. The story is certainly interesting, but the initial thesis has come and gone and given the complexity and change in thesis I don't think I'll have anything else to say on the public / free blog side!

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Michael Hess
Michael Hess
2 years ago

Any word on how the record date effects your ability to receive the $6.25 cash distribution? For example, if someone bought GTXMQ today, would they receive $6.25? If this is info which i reserved for your paid subscribers, I understand.

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