RE:RE:RE:Fission is up > 30% in 30 days...You are correct. Those are the terms. I am not saying it'll be converted this week, I'm just saying, in my view, Li Ka-Shing will have the opportunity to convert it into shares. FCU proponents like to point to the $2 target on the stock as partial proof that it's a good buy. Okay. NXE has an approximate $4 average target. His convertible debentures will be converted into equity if that occurs.
I am fine having this discussion with you and I've had the odd decent back and forth with quakes. We don't have to agree on it all. Heck, we might all end up doing quite well. There are a few posters like Rover where I like to call out their nonsense.
Greenday wrote: @ SASKEXPRESS - This is NXE's agree with CEF.
The Debentures have a term of five years and bear interest at a rate of 7.5% per annum, payable semi-annually in arrears, with 5% of such interest payable in cash and the remaining 2.5% payable in common shares of the Company, such shares to be issued at a price per share equal to the 20-day volume-weighted average trading price calculated in U.S. dollars (the "20-day VWAP") prior to the date each such interest payment is due.
The Debentures are convertible at the holder's option into common shares of the Company at a conversion price of US$2.33, representing a 30% premium to the 20-day VWAP prior to the announcement of the Offering.
So why would CEF convert their semi annual cash interest due for NXE shares (starting on December 10 I believe) at US$2.33 when they can buy them in the market on December 10 for very likely less than that. NXE is at $2.18 CAD today so it makes no sense for CEF to pay US$2.33 unless NXE trades above US$2.33 on December 10.