OTCPK:DJACF - Post by User
Comment by
TheMogulon Jun 01, 2018 3:21pm
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Post# 28113068
RE:RE:RE:hiku?
RE:RE:RE:hiku?BottomPicker wrote: I may not understand this correctly, but it looks to me like Hiku has ensured that their stock price won't exceed $1.50 for some time.
The early conversion debenture they announced on May 16 gives investors the opportunity to convert their debentures into Warrants that give them the right to buy Hiku stock for $1.50/share until 2021.
https://www.newswire.ca/news-releases/hiku-brands-offers-early-conversion-debenture-opportunity-682849581.html
Anyone who understands debentures and warrants better than I, feel free to correct me.
Convertible debentures are a debt instrument, so it seems to me like HIKU wants to encourge people to convert their debentures early to save on potential high interest payments (8%) on the outstanding debt. They are offering the warrants as an incentive for the early conversion. The idea of the warrants are that you sit on them and convert them sometime before the expiration and pay 1.50 / common share at the point of conversion.