GREY:ALEAF - Post by User
Comment by
Toweringmarson Dec 18, 2020 2:03pm
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Post# 32141292
RE:Convertible Debentures
RE:Convertible Debentures You cant just force conversion unless the shareprice is higher than the issue price. If a holder like Raddy boy were to convert it would be @ $2.3875 for his 418 shares, he would then forfeit his rights to the interest payments.
Frankly just wont happen. And if they did all convert. It would essentially mean we did a raise @ $2.3875.
You'd really be that upset about 10m shares.
its 1/28th of the float. 3.5% of the total float for 25 million would imply that the inherent value of the company is $700m.
Again, it doesnt concern me in the least.
Dont miss the forest for the trees. Regardless of what the workin' man med baby tells you.
sincitywizard wrote: I'm trying to figure out the amount of potential possible dilution to shareholders with regards to the Emblem convertible debentures issued in March 2019 that mature on February 2nd, 2021.
My understanding is that they were originally sold at $1000 per unit and convertible at $2.3875 per share.
Gross proceeds at the time was $25,000,000 CAN
Conversion ratio would then be $1000 divided by $2.3875 which equals 418.848168 shares per unit.
So, 25 million in proceeds, divided by $1000 equals 25,000 units
25,000 units multiplied by 418.848168 equals 10,471,204 shares.
Does this math add up to everyone? Am I understanding how these convertible debentures work correctly?
Please advise. Thanks!
The Wiz