Because the option premiums are so high right now (highest ive ever seen, especially for OTM strikes), Ive been looking at taking a position in Maxeon Solar technologies. The reason option premiums are so high is because their current majority shareholder, TZE, is trying to raise their stake in the company from around 23% to 50.1%, making them a controlling shareholder with a $100M investment in equity as well as another $98M debt investment.
Obviously, this will dilute the shares to hell and back, but Ive been trying to figure out how low exactly it will go. But something that doesnt make sense to me is that the 27% of shares they will be buying is currently valued at far less than $100M, so the question I have is when this kind of thing happens, will a company like TZE buy those shares at well above market price in aquiring (current price is $1.35), or will they buy at market value and dilute the shares well above the 27% necessary they need to take control of the company? I cant find any clear information on the SEC EDGAR engine or their investor relations page on their website.
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