RE:RE:RE:DebenturesGriz_Online wrote:
I've never bought any was wondering how it would work i could buy now at quite a steep discount, collect the interest and when they are due for redemption the co has to buy them back at par? provided they don't go bankrupt.
Yes, as you said, PROVIDED THEY DON"T GO BANKRUPT, BUT they can repay with SHARES in the Company.
In Weq's case, and much like other companies debentures I've had where they could redeem for shares in the company based on the trading price in the previous xx days before redemption.(Artic Glacier Inc Fund). Massive dilution for their existing shareholders but it worked for me because I bought at a discount and sold before they redeemed for shares. If cheap enough, even if the share option was exercised, might be able to sell the shares on the market if you get them in your account quick enough under that scenario, and sell them before others also get theirs and flood the market causing a lower market price.
"Subject to any required regulatory approval and provided no Event of Default has occurred, the Corporation has the option, upon not more than 60 nor less than 40 days’ prior notice, to satisfy its obligations to pay on redemption or maturity, the principal amount of and premium (if any) on the Debentures, in whole or in part, by delivering freely tradable Shares. Any accrued and unpaid interest will be paid in cash. In such event, payment will be satisfied by delivering for each $1,000 due, that number of freely tradable Shares obtained by dividing $1,000 by 95% of the volume-weighted average trading price of the Shares on the Exchange for the 20 consecutive trading days ending five trading days prior to the date fixed for redemption or maturity, as the case may be. See “Details of the Offering – Debentures”."