Aleafia Health Inc ALEAF

RE:RE:RE:RE:Convertible Debentures

[sincitywizard]

Actually I really don't know how they work.  You give me too much credit! 

For the record, I am long this stock.  I want the share price to go UP!  Look at my posts on this Board and on Seeking Alpha.  You'll see I am a believer in the company and have defended it for years. I am LONG.

I have posed some questions in my last few posts only because I am just starting to get concerned about that debt.  I keep it simple with my investments.  I don't do options and have never shorted a stock ever.  Convertible Debt is a little confusing to me.  I am a magical wizard, not a financial one! 

It is because these debentures are coming due in several weeks that I am getting concerned about my position and despite all of the good news lately, it appears as though this debt is the overhanging issue, as the share price has not budged on all this good news. 

I've been a shareholder since the Emblem days.  I have tens of thousands of shares.  I have shares in many cannabis companies.  I have done well on some, horrible on others.. Lost a fortune on Ianthus due to Hadley Ford... This is another one of my losing positions, and as time is of the essence with regards to these Debentures, I'm really wondering how they work and don't want to get screwed.

I ask the more knowledgeable finance people on this Board to chime in with regards to the debentures and at what price they convert to make the "bondholders whole"

I read in the notes on the Reddit board that they are "convertible at $2.3875, subject to adjustment in certain events, at the option of the holder;" and "Aleafia Health may require the conversion of the full priciple amount of the outstanding convertible debentures at the conversion price on not less than 30 days' notice, should the daily volume weighted average trading price of the oustanding common shares of Aleafia Health on the TSX be greater than $4.12 for any 10 consecutive days."

So it is the "adjustment in certain events" that concerns me. 

The real question is:  Since share price has gone down, is an adjustment made in the number of shares debenture holders get when converting to equal that convertible price of $2.3875?  Since the share price is now $0.52 that would make a big difference! 

From what I found on the web, normally the "conversion ratio" is equal to the "par value of convertible bond" divided by the "conversion price of equity". 

Where is an MBA or Accountant when you need one?  Someone who is knows more about this, please chime in. 

Thanks,

GLTA Longs!

The Wiz