Addax Petroleum (fka AXC)

[Krombacher]

Generally, the notes are a loan paid to the company immediately, whereby if converted to shares absolves the company from having to pay back the principal.

The conversion price is the key because it determines how many shares get printed for each note.

If it's floating, that means you take the dollar value of the notes and divide it by a percentage of the share price...with the case of the other notes that would be 60 percent of the share price.

If it's fixed, then that means you simply use that conversion price to convert...i.e. divide the dollar value of the notes by the fixed conversion price.

If the conversion price is floating, then the number of shares printed will depend on WHEN Offor ultimately decides to convert....because you use the share price at that TIME.

Krombacher