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

RE:RE:RE:RE:RE:RE: Flat guidance

[yoda2]

geoffs --  this issue has been a concern of mine for sometime.  I have raised the issue in the hope that other BBmembers, with more expertise, would be able to explain how the debenture conversion would not occur.  So far no explanations.
So it seems that the debentures could be paid for (IE not converted) by keeping the share price below $1.41 until their due date(and then they would be paid for) or if LSG would start to buy the debentures in the open market and holding them until the due date. This latter idea seems unlikely as it would take a lot of work, the volume traded is always small and likely the TSE approval would be required.
But the most probable reason for not paying off the debentures would be management's self interest of having an additional $100 million in cash to invest(or to play with) at very little work, and low transaction costs(remember how costly it was to entice Sprott to lend LSG money.
So it seems that the most likely outcome will be efforts to get LSG's share price above $1.41, so that conversion can be forced.
So it seems LSG effectively has 500 million shares outstanding.