Providence Gold Mines Inc V.PHD

Why Would an Established Company Have Convertible Equity?

[KozmoT]

From the link i posted earlier ...

..."Some reasons for this could be:

1. The company might be insolvent
2. The company might owe a significant amount of money to various creditors
3. The company might be facing a lawsuit wherein it is nearing insolvency and needs financing to recoup the funds spent on litigation"

[givemeabreak1]

Think of a convertible equity as a bridge loan towards other types of financings.  If other types do not show up by the time the loan is due say finito.  As for pricing it is usually quite heavily discounted with all kinds of protection clauses for the holder..... I have not seen alot of these in the mining space whereas they are used quite oftern for IT startups.   Whether

[KozmoT]

Its what down and out companies try to do just before insolvency. And given they just tried and failed to do a financing at a mere 7 cents and current bid is $0.045 I'd say it does NOT look good for this crew.