I have considered the proposition that the debt holders have converted and sold immediately into the market, and have, therefor, not had to report the conversion. Makes sense. However, I do not agree with the further proposition that if the shares were undervalued, or a buyout at a much higher price was coming, that the debt holders would not have sold into the market.
Firstly, those who have loaned were secured creditors in the first position. To assume that these lenders would readily exchange their secured position for equity in a company whose SP has nosedived, for the possibility of a huge return does not necessarily fit the psychology of the lender, in my opinion.
Secondly, the proposition assumes that the lender(s) have not borrowed the money themselves and need to repay their own debt. They may have borrowed at 7% and then re-lent to ECIG at 15%.
Despite the possibility of a great further return, there could be several reasons why a lender would not prefer to become a equity holder.
