Arcan Resources Ltd ARNBF

RE:RE:RE:RE:teevee, debenture redemption

[seriousinvest]

TV I find your interpretation to be nothing short of bizarre.  That provision is a very standard one that is contained in every convertible debenture I have ever read (the percentages and dates of course vary).  While I was not involved in the Arcan Debentures, I have been professional involved in the issuance of many other convertible securities and I can assure that your reading is totally wrong.  

The Debentures can not be called prior to their maturity unless the stock price exceeds the conversion price(by a certain percentage) for some period of time.  Unfortunately, this is not the case in this situation.  The debentures will be paid off only when they mature and if the company does not have the cash(as it almost certainly is going to be the case)  then it has 2 and only 2 options. Option one is to pay off teh debentures using stock having a market value of 95% of the thne current market price or two file for bankruptcy relief.  Clearly any sane management (especially this one since preservatin of thir jobs seems to be their top priority not protecting the shareholders) will choose option 1 regardless of the amount of dilution to the then current stockholders since option 2 will result in the total elimination of the common shareholders unless the debt holders(including the convertible debenture holders) are paid 100% of the amount owed to them. You apparently(notwithstanding your claim of owning no common stock) do not like that result but that doesn't change the fact that that is what the law requires.

Get over your fanatasy intreptation and start to focus on the relaity of your situation.  Your shares of Common stock are going to be worth less than toilet paper.