There's $5mil in convertible notes, but as i read the wording they are not floorless, and they're way out of the money. The following is from page 71 of the May 27/99 AIF pdf file on sedar -
"The Company has issued two unsecured convertible promissory notes payable to Urija Trading Ltd. in the amounts of $2,500,000 each. These notes bear interest at LIBOR plus 2.75% during the first year and LIBOR plus 3.25% during the second year and mature on April 20, 2000 and June 15, 2000, respectively. These notes can be converted into an aggregate maximum of 4,000,000 Common Shares of the Company at the option of the Company during the first year and at the option of Urija Trading Ltd. during the second year. In each case, both parties must mutually agree on the conversion price. Accordingly, these notes have been classified as liabilities for accounting purposes."
So that's a 1.25/sh floor on conversion ... or is it? Could it be re-negotiated?
... that could explain the .185 lid .... there is $4.6mil showing under current debt as well, none of which notes were originally convertible, but one to Austfin has been re-negotiated in consideration for 500k shares with attached warrants at .30 .... could the same be about to happen with Urija's notes??
Then follows the question - 'Who is Urija Trading Ltd.?' |
