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

RE:RE:Convertible Debenture

[Anonyminus]

Thanks ub40eh...So I am no expert when reading official transcripts like that, but my interpretation in plain and simple wording is;

1. as of the specific date, if you hold the debentures, you can choose to convert them to shares which would eliminate an equivalent amount of the debt that LSG owes, but also diluting the share count as well. LSG will still owe the interest on said amout as of the date of conversion, but the principal will disappear.
2. After Sept 30 2015 and up to maturity, LSG can decide that instead of paying cash to cover the debt they can choose to pay in shares provided the current value is atleast 130% of the original 1.40 conversion price.

I realize that there are a lot more scenarios in this, but just at the basic level am I undersanding this correctly. So with all the long term debt, there is a chance that the stock gets diluted as opposed to LSG paying it out in cash?