Key and All,
Key, unless I've missed relevant discussion on the board, what you're saying has not been explored much from the potentially positive impact standpoint.
1. IF I'm understanding correctly -- the conversion which you say will cause a little dilution at the same time keeps all that cash in the company's coffers, no? (at least for the time being). In other words, in exchange for accepting some dilution as per the conversion of debt to shares, the note is torn up and Sigma no longer owes the debt, yes?
2. IF I'm understanding correctly -- the folks who made the loan, (the note holders), if they are opting to convert to shares that means that in their judgement there is a better chance that they can realize more $$$'s sooner or later by accepting shares in exchange for debt, (debt that they well know Sigma is capable of paying interest on and paying off, at least with the company's current cash).
2b. I agree with you that the probability is that they will sell most or all of the shares, should the share price afford them a compelling opportunity to do so.... But, it does seem that 1. they think there's a decent chance the stock price will be stable to up in the short term and 2. a chance that they want to remain equity owners, (shareholders), because in their judgement things are looking more compelling for the company.
Again, I make no promises that either my understanding of the operation of the note OR my analysis of the implications of the note holders exercise of the equity for debt provision of the note is insightful. I'm NOT CERTAIN. BUT, at least in the interest of balanced exploration and analysis of things, we ought to look at the possible positive indications and implications.
Who agrees? Who disagrees? And why?
Thanks
