The debenture holders will receive common stock either they convert today or in December 2019.
The debenture holders will also receive the interest in March 2019 in common stock. No matter what rad10 alias claims, the debenture holders will not receive cash for the interest of March 2019, contact ZAR to verify or read the debentures.
So if they convert today, the conversion price is 10 cents.
If they convert in December 2019, the conversion price will be at 95% of ZAR's common stock price in December 2019, according to the terms of the debentures.
A couple of short-sighted posters think that they can get a few more from ZAR if they wait until December 2019. They think that ZAR will remain under 10 cents, because ZAR now is below 10 cents.
The current price of 10 cents is the result of these reasons but it seems that they can't get it:
1) Epic sell-off in WTI,
2) Epic widening in Canada's oil spreads and
3) Relentless tax loss selling because ZAR was an excellent tax loss candidate as it was much higher than 10 cents in the first nine months of 2018.
In December 2019, all these reasons will not exist. No tax loss selling, OPEC cuts production, Enbridge's Line 3, crude-by-rail shipments, U.S. refineries end maintenance this month and resume operations again, Alberta's Sturgeon refinery begins full capacity operations in December 2018 etc.
On top of this, ZAR will most likely use the recent financing to drill and then sell its North Dakota asset in 2019 to pay off the recent small USD loan and keep the rest in cash. The North Dakota asset is not affected by the Canadian oil spreads.
See now carefully the two charts with the Canadian oil spreads below:
https://boereport.com/detailed-quote/?tvwidgetsymbol=NYMEX:ICL1! https://boereport.com/detailed-quote/?tvwidgetsymbol=NYMEX:WCW1! Differentials for both Edmonton mixed sweet and WCS keep improving and they do it quickly! See the charts above.
When WTI returns to uptrend next week because it's tremendously oversold now and the algos exploited the low volume day yesterday and pressed it further pushing it down 6% (!!!), the narrowing of the Canadian oil spreads will accelerate.
Don't let the current relentless tax loss selling cloud your judgement.
Don't let the backward-looking approach cloud your judgement. See the charts above and draw your conclusions. It's not rocket science.
ZAR could be well above 20 cents in December 2019 and the debenture holders will receive much less shares when they convert in December 2019.
Even if ZAR is at 15 cents, they will again receive much less shares when they convert in December 2019.