GREY:ALEAF - Post by User
Post by
sincitywizardon Dec 18, 2020 1:09pm
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Post# 32140834
Convertible Debentures
Convertible DebenturesI'm trying to figure out the amount of potential possible dilution to shareholders with regards to the Emblem convertible debentures issued in March 2019 that mature on February 2nd, 2021.
My understanding is that they were originally sold at $1000 per unit and convertible at $2.3875 per share.
Gross proceeds at the time was $25,000,000 CAN
Conversion ratio would then be $1000 divided by $2.3875 which equals 418.848168 shares per unit.
So, 25 million in proceeds, divided by $1000 equals 25,000 units
25,000 units multiplied by 418.848168 equals 10,471,204 shares.
Does this math add up to everyone? Am I understanding how these convertible debentures work correctly?
Please advise. Thanks!
The Wiz