RE:RE:RE:RE:RE:Conv. Deb. ClosingHowdyBob wrote: When this stock was in the .80 range before the Sales License the new debentures were also being sold. So it was pushing higher before license and stopped because of people selling their shares to move to the offering. Then license day comes and big jump up, definitely sell high and move the money to offering. then it drops and others haven't sold yet and so need to sell lower to move to offering. but then annoucnement can't come at .84 when the price is down so time goes by gets it back up and announcement goes Nov 21 and is sold 100% before it is announced.
Last of the people selling to move over now done. Price moves up.
That's my guess to why the selling pressure. As for lock in 20% no I don't think so. It seems to me the reason a lot of offerings lately are debenture and not shares is because the investors beleive it is going much higher but would rather sit and get paid and convert later instead of riding the wave. New sector, lots of volatility.
No i dont think a lot of those will be sold anytime soon.
GLTA
Your explanation of doing shares vs. debentures makes no sense. They do debentures because these are risky investments, and therefore they need to ensure they will get something. It's all about reducing risk to the investor. If they do straight shares they could easily get screwed over in such a volatile market, especially if the company doesn't execute properly. Debentures makes sure that even if share price doesn't go up, they still make money. It is more ideal in the opposite scenario to the one you have described (i.e., when there is more uncertainty in the investment). In the end it is all about reducing risk, which is why someone may want to convert their debenture and sell right away and lock in gains, and just let the free warrant ride as the 'bet' on the company's share price increasing.
In any case, the only thing for sure is that we won't know for sure until Monday. I would be very happy to be wrong!