RE:RE:RE:jv fundinglscfa wrote: When the $10 million loan was issued and converted to shares immediately some asked why. I suggested that Cielo realized it will not get debt funding for the Edmonton plant unless it has more equity on the books. Since the lenders are also shareholders they went along with it. So why did they not do a straight equity raise in the first place? Because a convertible loan ranks ahead of equity holders in the event of trouble. They wanted to participate in the upside but at lower risk than shareholders.
I don't know this area very well, but one question. If they have converted right away which they've done, would't any benefit as you suggest be gone? The question then remains why theyd didn't just do raise in the first place which I have no answer, other than perhaps Don said previoulsy they wouldn't do anymore, wanted to keep his word? Somewhat unrelated and 100% speculation, does anyone think this was mcwhirter? Or did he get all his position on the open market?