RE:Mr. BeanOk then. You,re shorting. So what comes comes out of your mouth should be taken for what it is by anybody here reading. You,re intentions are clear then. So tell me then short man. If GLH decides to sell BMF then what would they get for it then? Awaiting your shortish stupid answer?
My intentions are to make money. To do that with GLH, you must short. (see chart)
And make money for the short side it has. It is all about understanding what you own and running the correct play. It is really remarkable that you even debate what has already occured. You were wrong! Admit it and let someone else manage your investments.
Here is something Mike Gorenstein could school you about. Put on your thinking cap and translate what he is saying towards GLH and you will have your answer of why GLH is doomed. 
Mike: There are pros and cons to traditional equity versus traditional debt, but I think convertible debt is significantly worse than either. As a public company, we would not issue convertible debt unless traditional equity or debt were unavailable. From an issuer perspective, convertible debt has the downsides of both traditional equity (dilution) and traditional debt (interest payments and subordination).
There is a balance between attracting new investors and protecting existing investors. Traditional debt is good because you can fund projects without dilution. Since the investor doesn’t have equity upside, they get payment priority over equity holders and a fixed payback. While equity is good because there is no fixed payment obligation, the investor gets a piece of future profits to compensate them for their risk. However, when companies can’t raise traditional debt or equity, they offer convertible debt.
With convertible debt, investors are compensated with interest payments, downside protection and equity upside. If the stock goes down the investor can get back their money plus interest. If the stock goes up the investor gets the interest plus the difference between the conversion price and market price. Sophisticated investors can also hedge and lock in their interest rate as a safe return (that’s why companies that issue convertible debt are often heavily shorted). And if the convert has warrants, the investor can hedge to lock in their interest rate and still get equity upside. However, that dilutes the common shareholder twice as much while still subordinating them.
Converts are great for the new investors, but not for existing common shareholders. Existing common shareholders get subordinated, but unlike traditional debt, they will also be diluted if the stock goes up and the converts are exercised. If the stock doesn’t go above the conversion price, the investors won’t convert the debt. And unless the company has enough cash on hand to repay the convert, the company will need to refinance, do an extremely dilutive down round, or declare bankruptcy.
Ultimately, if it’s available, I think the best way to finance expansion is with debt. If you are confident in your upside, you can borrow the capital and use the benefits of the cash without diluting your shareholders. It’s hard to find in this industry; fortunately, we were in a position to borrow $40M for our expansion, which I believe is the largest debt package ever in the industry.
The way we structured it is much different than a convertible note. First, our shareholders don’t get diluted if the stock goes up. Second, we can minimize interest payments by only drawing the loan as we need it – the interest only accrues on money as we take it. So while 12% may be a higher interest rate than what you typically see on convertible debt, the effective interest rate is actually lower. Finally, we maintain the optionality. If we generate the cash we expect from our expansion, we can prepay the loan with a one-month interest penalty at any time. When the big banks start lending we can refinance. Or if at the end of the two years we don’t want to repay/refinance, we can extend for another year. If the stock goes to $100 next July, we can raise equity (not converts!) to repay the loan with minimal dilution