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

Debs & Low SP

[ore2riches]

For all you technical and savvy LSG investors...can you please tell me...with the debenture agreement approaching a critical date, is this low SP not something of an advantage to the company?  Should be able to retire a pile at a nice, low cost.  N'est-ce pas?

[dutchmann64]

LOL...........Oiu monsieur........

[bigdaddycash]

not correct.  here is wording from prospectus: "On and after September 30, 2015 and prior to maturity, the Debentures may be redeemed in whole or in part from time to time at the Company's option, at a price equal to their principal amount plus accrued and unpaid interest, provided that the volume weighted average trading price of the common shares on the TSX for the 20 consecutive

[ore2riches]

Hey bigdaddycash, thanks for the response.  Yes, I understand the clause.  But what would prevent LSG from offering, say, a large institutional holder a reasonable price?  $1.82 does not appear to be in the cards anytime soon.  I would think some fund managers might be happy to take the money and run. o2

[bigdaddycash]

offering a single holder would be a securities violation - if they want to purchase back debentures they need to do it on the open market via a normal course issuer bid (formal notification).  Not saying that they could not do it through a shadow entity but it would be a security violation still and LSG would never do this.  there are reasons why they have the 130% clause - why would LSG

[ub40eh]

The company will simply buy them at Par. The debentures were issued at $1,000 units and trade at 1/10th of that. The LSG.DB are trading at $103.00 right now.... they were issued at $100 so that's a 3% gain PLUS the 6.25% interest PER year...... Had we been trading at $2-4.00 then yes the provisions are in place to convert..... but trading at a buck they're not in the money. JMHO UB

[bigdaddycash]

they can only "buy them at par" in two circumstances: 1) Prior to maturity: Through a normal course issuer  bid IF the market price of the debs is par or less (e.g. $100 or less for $100 face). 2) At maturiry on 9/30/2017 IF they have NOT been redeemed (e.g. the market value of LSG share is less than the conversion price of $1.40). That is it unless deb holders are stupid (or not

[ub40eh]

Big Daddy... as part of my DD, I had a whole list of questions and called for clarity...I had a very informative 20 minute conversation... if you have a moment give Mark Utting Vice-President, Investor Relations Telephone: [phone] at Lakeshore and either Mark or his assistant will explain it better than I can. it will be well worth your time. Take care UB