Spur Ventures Inc SPVEF

RE:Can anyone comment on the debentures? Positive or negative?

[jedd2]

This news release today details a notice of intent to prepay the entire principal amount of the $ 13 million Debenture to the Debenture holders.  In doing so the company will save the $ 1.1 million in annual interest payments ($13 million at 8.5%) on the Debenture.  The Debenture holders have indicated that they will exercise their option to convert their Debenture into common shares at $ .60.  That would be a no-brainer since the stock is trading at $ 1.80 plus.  Accrued interest payable over the past 2 years on the Debenture will be convertible into common shares at the market price at the time of conversion.  The company will not have to pay any money and will simply issue the 21.667 million shares to the Debenture holders.  These shares will be subject to a 4 month hold period.  The Debenture was most likely almost entirely taken by Ryan Beedie since he joined the board of directors as a result of the completion of the Debenture financing (see May 11, 2016 news release).   It's all good.