Chalice Brands Ltd CHALF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Stock is where it's at because

[jutah70]

@blind - 10% may not be the best thing when a company is trying to keep costs low.  If those interest payments come at a time when revenues can't cover them it is really bad.  Granted the only saving grace is the people who could enforce the debt repayment are management.

You may be missing more than what these debentures actually represent.  Maybe read the entire document.  That is the point I tried to raise earlier.  Too many people cheered the move.  Not enough considered the overall picture.  Smarter people look at the dilutive aspect, and the interest payment obligations.

If the debentures were such a good thing why did they not conduct a special issue to shareholders (as of a certain date)?  Because they would not take the chance that people other than themselves would be able to enforce the interest payments if they might not be able to be paid.

Where does that money come from to make the interest payments?  From the company's revenues.  I'll just leave it at that before this turns into a crash course in accounting and balance sheets.  I fear some out there may still not get it.