Quarterhill Inc T.QTRH

Please help me understand current debenture price

[pinetree4]

Why would someone buy debentures when the shares are trading only at $2.6/share?
Am I missing something here?

Debentures have 6% coupon and conversion price of $3.80...
While the stock is currently trading only at $2.60/shares with 1.95% div yield. That's 45% upside.

[cabbieJBJ]

pinetree, maybe they think the price will go (well) beyond $3.80. What do you think?

[pinetree4]

Yeah, that's why I said why would they buy debenture lol Wouldn't it make sense to buy shares at current price. 

[cabbieJBJ]

pinetree please return in a few weeks and reask your question.

[astutein]

6 % convertible  unsecured debentures. Note that  convertible debentures  are UNSECURED.  UNSECURED My comment re above: No reasonable knowledgeable investor would invest  $1,000,000 into companies unsecured debentures unless convinced by DD that company was financially secure  with book value  and very little risk.  Interest is not a factor if

[Capharnaum]

They get an upside on the share price while they don't have the downside (if the price moves down, they still get their money unless QTRH goes under).