LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

debentures

[stitch1956]

I think there is about 86 million in debentures. Any take out is likely well in excess of the exercise price of 1.40. That will be dilutive.  The more debentures they can buy up before hand the less he dilution on take over. Moreover, it is an easy way to buy shares in the company as the debentures can be converted to shares at any time. Same thing today, lot of buying from Anonomous.

[bigdaddycash]

I hold both shares and debentures.  I just read the "Change of Control of the Corporation" section in the prospectus on the debentures and it is outstanding and very favorable to debenture holders.  Take a read.  The actual conversion price drops from $1.40 to a lesser amount based on how far into the life of the debentures a change of control would occur - the ealier a

[bigdaddycash]

If I am reading this correctly, the debebtures will actually dilute shareholders more if they are converted by a change of control because the conversion price drops and therefore the number of shares that are issued on conversion will increase.  correct me if I am wrong...

[geoffs13]

This is not encouraging ---ouch triple ouch ---this shall hold the price down until Sept /17 .Then conversion and all h--- breaks out . All we can hope is that Tony is aware of this wrinkle ,thus the increase in the number of shares after conversion .Perhaps someone could make up a chart showing the number of shares vs. dates to Sept/17. Interesting find --ouch

[helgek]

I am not sure how the mechanics of a conversion or redemption will work. Let us consider an example: X offers $2 for the common shares. The next days, the SP will be close to $2, but the company can only redeem at 100 after 30 days, but holders can demand conversion to common shares immediately at 140.

[JRaffles]

LSG's rights to purchase debentures for cancellation, in the 2012 prospectus, is copied below. As it would be in shareholders interest for director sto use part of their cash holding to reduce debenture convertibility, then could it be that LSG is the anonymous buyer of debentures? Source: Prospectus Purchase for Cancellation   The Corporation may, to the extent permitted by applicable

[SKRiderFan]

good piont JR, i am not sure of accounting procedeur but are debs on the balance sheet as long term debt?

[geoffs13]

Tony recently made a COMMENT ALONG THESE LINES .

[bossu]

They can buy back debentures but I think they have to receive acceptance from the TSE with normal course issuer bid for convertible debentures.I have not see any note about any buy back. So who has been the big buyers in the past 3 days and there was a huge buying/ selling of 2,111,000 units at a price of $ 110 to $ 113 /unit ,So huge amont of money !! We will for sure in a short while the reason

[ore2riches]

Bossu wrote:  "in the past 3 days and there was a huge buying/ selling of 2,111,000 units at a price of $ 110 to $ 113 /unit" Hey Bossu, I'm still pretty green at this...but when I try to see the debentures on webbroker all I can find is:   Day Date Open High Low Close Volume*

[bossu]

Simply go to the STOCK WATCH site and clic on th  last 3 months closing price.for LSG.DB May be somebody else could provide the link but I can't