RE: RE: RE: That's enough for me! Well, I'm not sure why you think this conflicts with what I said. I said the total debt (which includes both bank debt and the convertible notes, plus current liabilities less current assets) was $300 million after accounting for their recent asset sales and breaking of the acid supply contract.
Anyway, at least we can probably agree on the numbers that are written down on the actual page, and maybe you can explain to me why you think a re-calculation is in order. The MD&A says the net debt wss $151.4 million and the convertible notes were $170 million at the end of Q2. If you look at the interim financial statements, the net debt consists of the bank debt of $139.6 million, plus the current liabilities of 57.1 million, minus current assets of 45.3 million. Then you add the convertible notes (171 million) and you get $322 million total debt. Subsequent to the end of the quarter, Arcan got $7 million from the land sale and paid $8 million to break a 24 million supply supply contract. So current assets decrease by 1 million (add 7 million in cash from the land sale then subtract 8 million from paying the acid supplier) and current liabilities decrease by 24 million of trade and other payables. So the net effect is 23 million less debt. So 322 million minus 23 million = 299 = I rounded to 300 million total debt.
Are you making the argument that I should include none of the convertible debt in my calculations, due to the provisions about how the notes can be converted at 95% of the market price at maturity? To be honest I am still trying to wrap my head around how that would go down dilution-wise and whether there are any rules about minimum conversion price. Maybe you can provide some insight to the board.