Pervasip Corp (PVSP)

[Arthur]

The standard Debenture contract specifies CD holders agree not to short the stock.

There would be no point anyways, they get their shares at a 40% to 55% discount off the lowest share price within the last 20 days (20 days VWAP).

Generally, the interest rate on a Convertible Debenture is moderate, say, 6%, because the debenture holders make they money from the conversion discount, not the interest rate.

The cash repayment penalty is the killer: 25% to 30% penalty for repaying the debt with cash, no matter wether if it's in advance or at maturity.

CD holders also agree not to convert or hold more than 5% of the O/S at any one time.

At some point, Factor Fund converted 39,345,576 shares on a single day, which was 9.9% of the then-O/S. So, apparently that restriction can be waved. Or ignored.