RE:Can anyone translate?Marchal wrote:
this in something clear please! The Convertible Debentures will be convertible at the option of the holder into common shares of the Company ("Common Shares") at any time prior to the close of business on the Maturity Date at a conversion price of $0.84 per share (the "Conversion Price"). The Company may force the conversion of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on not more than 60 days' and not less than 30 days' notice should the daily volume weighted average trading price of the Common Shares be greater than $1.40 for the consecutive 30 trading days preceding the notice.
The buyer of the debenture collects 8% interest from HVST on the debt, until they convert that debt into shares.
When they convert, it becomes shares at $0.84 per share. If the share price happens to be rise above 1.40 on average for 30 consecutive days, then the company can force the holders of the debentures to convert them to shares (which in a sense gets rid of the debt at 8%), provided they give the holders of the debentures 30-60 days notice.
It is probably unlikely that a lot of people would continue holding the debenture if sp was that high, as they could just convert it and sell to lock in an immediate ~70%+ gain, rather than holding and collecting 8% on the debt.