Supreme Cannabis Company Inc. (The) T.FIRE

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[Method]

I still think it makes sense to feed your common to the buyers and switch into FIRE.DB. It's like paying 17 cents for the common but you get over 2 cents/share equivalent in cash interest in a year without factoring in the accretion debentures. 

Better for long term investors vs short term traders.

[puppymonkeybaby]

Lets use round numbers.    Whats $100,000 at $58/debenture pay per year in interest?  I'm confused about the how the debentures compare to the accretion debs. 

[Method]

Even ignoring the accretion debentures it still makes sense on a cash basis. The accretion debentures won't see any cash flow until 2023 so, I'm ignoring them but they are material. The remaining debentures have an 8% coupon beginning in January so let's just use that for ease of calculation. 8/58 = .138 multiplied by the amount you want to invest, i.e. $100,000 = $13,800 in

[puppymonkeybaby]

Thanks Method. could you now explain the accretion debs and how they work? I like how you show your math. It makes it easier to understand, since my intellect is comparible to a baboon. 

[Method]

For every 100k in face (cost only $56k on the offer), they earn $8k in cash interest annually or $4k every six months. With the accretion debentures, my understanding is that you get 11.04%/year compounded semiannually based on the total of accretion debentures you already own plus the debentures you own. So I think in December, 100k in face value bonds should produce another $5.5k of accretion

[Method]

right now it costs 15.1 cents to buy the common through the debentures. It's better to buy the debentures than pay the 15.5 cent ask. You can even ask to convert them to stock and you will be better off.  Retail too busy buying the common to notice the deal on converts but that is not new.