Mr. Vanderlee,
Thank you for taking the time to answer our concerns.
Re: your message to JJ, I only have one question:
Maybe I don't grasp the concept of "convertible debt", so correct me if I'm wrong. To me, convertible debt means the LENDER has the option to convert the debt into equity in the company. This means that if the company does well, and the share price goes up, the lender will exercise his option, and end up owning half the company, even if the company has the money to repay the loan (this is the part I'm not too clear on).
On the other hand, if the company spends all the money and needs new financing, the loan is NOT converted into equity, and the lender forces the company into bankruptcy.
Could you please comment, and correct any misconceptions. Thanks.
Regards, George. |
