RE:RE:New Press Release - Greenbriar Announces Closing of $1.0 Million Unsecured Convertible Debenture Private PlacementConsidering the PP debenture has over 3 years fo be coverted at a $1.25, pays 12% annually, and comes with 460,000 warrants at $1.30, I would think it is a better deal to the investor then the shareholders.
Cosidering what the share price was a couple months ago, if I was large shareholder given the chance to participate in this debenture, I would sell out enough holdings to participate as the buy in is close to what the sell price was, you get the warrants, and you get 12% while you wait.
As it has a 3 year term, Greenbriar must not think it will have access to cash for several years to repay, or it would have had a shorter term considering the high rate. Anyone earning 12% on their money wont be in a hurry to convert the debt to shares and would be wise to wait out conversion as long as possible.
The other thought is that one of the projects is close to starting, some short term money was needed to bridge thru until the lines ofcredit are accessed, and Jeff decided to pass a good deal onto a friend as " one hand washes another" .