Long Run Explor Ltd Ord WFREF

What is the appeal of the debentures?

[MaxPowerJr]

I can't see the appeal in this offering. They are offering a 6.4% convertible and the conversion price is $7.40 You can buy LRE stock for $5.30 and starting in February, the dividend works out to 7.58% - you participate in all the upside from $5.35 to $7.40) (and beyond) What am I missing?

[aaaaaargh]

I am not positive, but I think you are saying that there is now a guarantee that LRE will have a share price of $7.40 by the time the debenture matures.   The buyers of the debentures will only convert at $7.40 if the share price of LRE is naturally higher than that, making them an instant virtual profit.  If the share price of LRE is still around $5 at maturity of these debentures,

[MaxPowerJr]

Well, I am not saying that the future SP will be $7.40, but if one purchases these debentures, this is your hope. Today was a great day to take a position - not the debentures, but in the stock. This debenture offer make the SP drop, and coupled with the market sell-off, this was fortuitous. Current SP translates to a 7.75% dividend.

[Shlinker_]

MaxPower. Congrats to you getting in today (or buying more).This was infact a good opportunity. The charts screams uptrend, and not too mention the sharp rise in support and volume around 5.05 tells me reversal pattern. id say the price action caught a few stop loss orders on the way down. Were back to 52 week highs soon imho. Cheers to all.

[JohnJBond]

FYI, the appeal of the debentures to investors is the added security they have over the share, both in terms of principle and yield. In the event of company liquidation, the debentures are paid out before any funds are directed to shareholders. In terms of the yield, the share dividend can be lowered or cancelled at anytime.    The debentures have a defined yield. For those who expect