Confirmed & i stand corrected.....BUT!Indianjoe wrote:
Like I said, the conversion was NOT "voluntary", as per the news release straight from PIPE;
"After two years, if among other things, the closing price of the Common Shares is above 200% of the Conversion Price for 20 days over a 30-day trading period, the CP Shares will automatically convert into Common Shares at the Conversion Price "
Sorry to my fellow investors for the delay in responding to Mr. IndianJoe on the subject of these covertibles & the finite details that go along with them. To confirm his allegations above, that these convertibles were INDEED automatically converted, i needed to go deep into their financial statements and find the info i required. Something i should have done beforehand, as these financial instruments usually carry confusing & complex clauses with them. I should have known better that to assume these were straight forward conversions......but...
Therefore from the following....
"The face value of the CP Shares plus any accrued dividends paid in-kind at a point in time forms the “Liquidation Preference” of the CP Shares. The Liquidation Preference of the CP Shares is convertible into common shares of the Company at a price of $0.85 per common share, subject to customary adjustments, at the discretion of the holders at any time. After September 15, 2022, if among other things, the closing price of Pipestone Energy common shares is above $1.70 for 20 days over a 30-day trading period, the Liquidation Preference of the CP Shares will automatically convert into common shares at $0.85 per common share. In the event that there are CP Shares outstanding at the end of the five year term the Liquidation Preference of the CP Shares will automatically convert into common shares at either $0.85 per common share, if Pipestone Energy common shares are trading at a price at or in excess of $0.85 per share, or otherwise at a price equal to 95 percent of the previous 20-day volume weighted average common share price."
But!!! This only REINFORCES my POV & what i've been trying to get across. This explains why GMT & Pipe NEVER sold out & accpeted any deals in the past two years. And i will explain further my rational behind this.......next week. Don't have the time to explain all today.
So it seems good old IndianJoe was indeed correct on the CP's, but nothing else. And he never addressed the second part of my post.......for some wierd reason. But kudos to IndianJoe for contributing something useful here and i do stand corrected on my failures to see the fine print. This wasn't anything to do with dishonesty as IndianJoe wants you to percieve it as, and everything to do with a lack of proper DD on my part. But like i siad, this only reinforces my beliefs much more of what's going on here with Pipe.
Have a good week-end eveyone....and stay tuned as this story is only begining!
GLTA