GREY:SMDWF - Post by User
Post by
cheval57on Mar 04, 2015 4:45pm
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Post# 23490458
Debenture
DebentureThis financing by debenture is very good for those who bought it. If they convert the debenture into shares, the shares will have a cost per share of 12 cents. One unit is worth 1,000$. Divide this amount by 8,332 shares per unit converted and you will get the 12 cents. And, in addition, the unit holder got warrants. If you noticed that the share price is at .255 today, I think that the debenture holders will convert. This is only my opinion. What do you think?
This should be good for the company because the interest rate of 12% will be an important expense if there is no conversion. What is also even better is that the due date of the total interest payments is at the end of the debenture life . It will be payable at a time when the company should be in a better financial position to make the interest payments.
All of this looks very positive to me. I am still a buyer and have been one even today.