Petrominerales Ltd PMGLF

RE: $100Million Convertible Debt Offering

[larsen6]

Convertible debentures are a combination of debt and call option. Long term, it can certainly dilute the float. But issuing paper right away does that much quicker. There are pros and cons. So far as trading, drbob is right, those purchasing the debentures will want to short the stock down as low as they can to get the lowest average price possible for the pricing of the debenture. The spread of of 3.25 - 4% is pretty wide, but does not seem unreasonable. We will all love to see it at the low end of this when it is priced. After picking some up at $21.92 just recently, I averaged this by picking some up at $19.02 just a minute ago. Because the stock is pretty illiquid, shorting it down has been easy for those intending to do so. Get your stink bid in if you believe in the company. Larsen6