Cannex Capital Holdings Inc. - Ordinary Shares C.CNNX

RE:convertible debenture news

[Chris2982]

It’s a higher interest rate in exchange for a higher conversion price on the stock. 1.10 instead of .88 and the purchase warrants are 1.5, 2, and 3x the 1.10 so it’s basically paying a higher interest instead of having a lower conversion price into common stock.

Do you even know how warrants work? They are saying that if the stock shoots up to say 3.00 then Gotham can purchase shares for 1.65 and so on. They still have to pay the 1.65 so it’s not like they’re handed stock for free. 

And cannex has had the option to fully repay the loan after a year so if everything goes really well then they wouldn’t even have to convert. Overall this seems like a solid deal on both sides to me