Thank you zeynoc. Unfortunately, I'm having a disconnect on how these convertibles work. I'll have to read up on it unless you or someone else maybe can point out what is wrong with how I am thinking about them:
DMRJ loans IMSC actual money for operations. Let's say $3m. IMSC gives them an IOU for $3m plus interest of say $500k. TO simplify, payable at the end of the year. They don't pay the $3m and they refinance for the same terms one year out, etc..To date they never have paid the principal of $3m back, they have made SOME interest payments but over time they accumulated $2m in interest that they owe at present.
IS that a reasonable summary of what has occurred?
If so, how can DMRJ NOW ('at any time') convert the full $5 million if they don't actually have the money yet?
IF not, how should the above scenario be revised?
