OTCPK:ARNBF - Post by User
Comment by
rad10on Jun 30, 2014 6:08pm
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Post# 22706836
RE:RE:RE:RE:What about this?
RE:RE:RE:RE:What about this?teevee wrote: The conversion price on the debentures is $9.00 which means debenture holders won't convert. The company can't redeem the debentures so all they could do is offer shares around market price. Debenture holders would probably vote in favor, but shareholders (especially CPG and LTS) would get to vote on this and would likely vote against being diluted so heavily.
Hi TV - I appreciate that you may be new to this.
There is a lot they can do if they work with us and obtain the consent of the debenture holders. An extension of the term with a consent fee, a reduction in the conversion price, an increase in the rate on the note or a combination of any of the three. I am not too worried about this as maturity is 2 years away and the assets more than cover the 2016 issue.
Arcan Debentures will be just fine - it is tempting to take profits, but where better to put the funds at present? Spanish 10 year gov't bonds are yielding south of 3 percent................
Why should I subsidise the equity holders and give up 17.5% of my holding ??