I know this is nit picking but the way I read it, the notes are perpetual and can be converted anytime after 19/4/18 into shares at $0.40 a share. Conversion can be at any time while the company is a going concern.
However in practice you're right, the Notes are subject to mandatory conversion within 2 days if the company undertakes a single cap raise or 2 cap raise and a rights issue of >$10m between now and Sept 30. One of these is almost certain.
They contain a provision that if the cap raise/s occurs between now and Sept 30 and is at less than $0.40 share, the Note Holders could convert at "an amount equal to a 20% discount to the issue price per share subject to a qualifying Capital Raising subject to a minimum of $0.23 per share".
So for example if the company undertakes a cap raise at $0.35 on July 1, the notes convert to $100 of shares at a 20% discount to the cap raise price ($0.28). Directors intend to take up almost 10% of the CNs subject to approval.
On balance, note holders are guaranteed a price of between $0.40 and $0.23 a share on the cap raise. Shareholders will get the dilution and whatever the cap raise price is at announcement.
I sold my recent and very small stake and will re-enter if the cap raise is attractive.
GLTA
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