TSXV:NYX.DB - Post by User
Comment by
borne2runon Nov 08, 2017 1:06pm
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Post# 26926641
RE:Re:this is not bullshit
RE:Re:this is not bullshitNo, magnum, your understanding is not correct.
WH purchased convertible preferred shares that pay dividends.
They have the right to convert those preferred shares into common shares @ deemed price of $3.67 per share (prospectus for pref shares may have specified the conversion rate based on the British Pound currency).
In other words, each $3.67 million of preferred shres can be converted into 1 million common shares.
The company receives NOTHING, NADA, ZILCH, ZERO as they already received cash when the preferred shares were issued.
However, once converted, they will not have to pay any more dividends on the pref shares.