Kontrol Technologies Corp N.KNR

Great News Debenture!!!

[kokomak]

Shareholders,

First off, a convertible debenture is a type of long-term debt issued by a company that can be converted into shares of equity stock after a specified period. KNR basically told the debtors that, we're willing to increase the size of the loan and pay you a little later, instead of giving you shares right now. And the debtors accepted! What does that mean? Either the company expects to make a lot of money soon (orders), or expects their share price to rise substantially between now and December 15, meaning that they'll give less shares to redeem their debt than they would today. Even better, is the fact that the debtors agreed to this, which means they believe that's a plausible scenario. This is a great sign. Not sure if all retail investors will understand this, and whether it'll be reflected on the stock today, but if you're a long, you should be very happy with this decision

Kokomak

[Seedickcook]

Thanks for the explanation - appreciated!

[Tandem09]

He also has the potential, from now to then, to earn enough money to simply pay the debt instead of diluting further.

[Dreame4ever]

Helpful info for a newbie!

[canyousayiii]

I am not quite sure that you got all the technicalities behind the debenture correct. But it really doesn't matter given the potential we expect.

[canyousayiii]

I just read it and gave it some thought. You are actually incorrect. The simple story is as follows. KNR was raising $5.8 million. It offered this to the debenture holders whose loan was to expire mid-December. They will get the final interest payment on this old debenture agreement by mid-December and then they hold the new debenture for a couple of years comprising of a loan portion and stock

[wilander]

I just read your posts (including other stocks) canyousayiii.  Always negative or undermining. You are clearly a short. Note taken

[canyousayiii]

You are clearly wrong. I bought more in $4.30s yesterday knowing that I am not necessarily catching it on an upswing. When discussing champagne, I don't like Koolaid, regardless of the flavor. Why don't you be a man of integrity and state where my interpretation of the debenture is incorrect, or whether it is more incorrect than the one suggesting that the number of shares issued is

[mcfart]

Thanks Kokomak for explaining very clearly.