RE:RE:RE:RE:RE:RE:RE:KABOOM! OntarioCan you clarify what you're trying to describe here? To me it likes you're describing a scenario where management adjusts the conversion rate of the debentures to make them more attractive under the assumption that insiders own a large amount of those dentures. If I'm understanding it correctly there are a number of problems with this theory.
1) Debentures have terms that dictate how they can be handled. The debentures can be recalled for sure if the company buys out the face value, nothing sneaky there just repaying the money they borrowed. I don't recall any terms that indicated the conversion price could be altered, if you have a source that indicates otherwise then please cite it.
2) John is the biggestest shareholder, a scheme to dilute shareholders hurts him more then anyone. Keep in mind that only 11.8Mil in debentures were issued.
3) If he did happen to actually have a large enough share of the dentures to make it so he gained more on the deal then he looses in dilution then why $0.60 cents? (if you have evidence of his denture ownership it would be nice if you, again, cited) Why didn't they already do it at $0.40 or todays $0.53? Why wait to $0.60 and get less? Makes no sense.
Jordan1203 wrote: At this point I am almost certain it's the debentures.. pretty sure management bought a large % of the debenture offering and started short position at 1.20 all the way down to 40c range.. common strategy is to immediately hedge and go short on debentures when u buy..Interest payment is due In the next few days. Wouldnt be surprised if SP settles at 60c then announcement is made to allow conversion @ .60c following payment of interest... National bank owns huge chunk of shares, debentures, warrants....Coincidentally John III worked for this bank prior to starting D9...Hmmmmmmmm.....settling those debentures @ 60c would increase % of inside ownership which we all know they love. That 1 million share transaction from cannaford that killed the rally a few weeks back went to national bank 2...HMMM... coincidentally knocked the SP back under 60c.