Bob,
<<Secondly, as just posted, conversion at 125% of current price does not dilute.>> I agree with Brad that on the surface this doesn't look good, and I'll tell you why.
First of all, we have to have details of the debenture in order to clearly analyze it, but even though it's not at a discount, say 80%, we still don't know the when. people that buy these debentures typically will short the stock, drive the price down, and convert at a lower price. 125% of 3 is better than 125% of 6, eh? They get more shares that way. Let me stress we have to see details, but let's not sweep this under the rug as a good thing just because somebody loaned us 10,000,000. As an analogy, I've often bought boodles of stock in a dog company, one that wasn't worth anything, just because I think I'm going to make a gain on my investment. Not trying to be a contrarian, just a realist. Let's look at the details, if they are available, before we decide if it's good or bad.
On a brighter note, last night after I went to bed, I remembered when Naxos had their release. I read it, immediately called a friend, who is a fellow IPM and chip investor, and we read it together. both of us were extremely positive, yet the naxos thread was almost in mourning... perhaps the same thing has happend here. We should try to get some outside opinions, people neither long nor short IPM to look at it and get their impressions. just a thought.
best,
kim |
