RE:Just In<strong>BeeGeezUs--have they never heard of death spiral financing?</strong><br /> <br /> So they issue convertible debenturess that carry 6% interest and convert into common shares at the averge price for the month before the debentures are due, but the conversion price will be reduced by the maximum amount that the exchange permits, probably on the order of 20% or more.<br /> <br /> That's a hell of a good deal for the debenture holders and a terrible blow to common stock shareholders.<br /> <br /> Here's what will happen: <ol> <li> the price of SPP will decline during the one-month window before the debenture is due. Yes, you can figure out why.</li> <li> the price of the shares used will be further reduced as allowed by the Toronto Exchange.</li> <li> the debenture holders will be buying stock close to 50% of what it had been trading at before conversion.</li> <li> once the debentures are converted, the selling pressure will disappear, the stock will rise and then the selling will commence.</li> <li> the debenture owners smile all the time while raking in the money.</li> <li> SPP share count will continue to expand drastically making it impossible for the company to ever report a profit.</li> <li> eventually bankruptcy will follow.</li> </ol>