RE:RE:RE:DBV likely didn't pay quarterly interest or issue shares.Now for the no BS answers... which are similar but more to the point.
Farshad used a debenture because he tried for about 3 months to fill a PP with no success. The debenture was his last resort and is not a very desirable way to advance a junior exploration company as you are all now painfully aware.
After reviewing the released information the only logical conclusion for the debenture to be called early is that Farshad missed an interest payment. Is DBV out of money? At the end of April DBV had more debts than capitol. That 120K getting tossed around was undoubtedly used for maintaining operations of some sort and so don;t expect 120K to be in the bank today.
Farshad can not simply issue stock for a debenture payment. He has to pay cash unless otherwise agreed by the other 2 parties.
Unless Farshad works a deal with one of those 6 majors (rolling my eyes) that he was bragging about last winter then he has little to no ground to stand on.....
Time will tell.
lifegoeson wrote: GFD500, all good questions, I believe these would be the answers... Debentures are issued to raise capital rather than a financing by issuing shares because Farshad believes (or at least hopes), that they can hit it big at the HAT by using this money, and then either accelerate conversion or if he then can raise capital at a higher price (let's say $0.30 because he it a big core and the price ran up), he then has the option to pay the debenture off for cash value plus outstanding interest due. It is really that simple, great if everything works and if not, Farshad still gets the money and the absolute dilution is defined in the Debenture in the exact number of share issues. The debenture holders althogh have the option of protecting themselves by a lower share issue by having anti-dilution pricing, i.e. gets the equivalent shares at a lower price to keep them whole. I hope this helps.
Wolfie, as I read the Debenture, it isn't due and then can't force it, it is just posturing, a hope they can force Farshad's hand because he hasn't given them their shares from the interest quarterly due, so the amount has to be small, like 5% of the total in one quarter, i.e. $572,000 Canadian x 5% x 1/2 of the year because I believe Farshad is cheap, posturing and didn't pay them their stock, or about
$14,300 or the equvalent in stock at the Debenture price.
I still don't understand why Farshad didn't issue stock rather than force this to court, he simply can't win in court from my perspective.
Unless of course he has something else in the works like a Joint Venture, where he could use the cash to pay off the Debenture, then use the JV potential and drilling to get a higher price. Anyways, he seems to always be behind the 8 ball when it comes to rule, and who and when he has to pay...
Anyone, if what I have said is wrong, please explain.