Simps: you are saying something very important here, at least for me - the conversion rate for the notes. Are you saying it is half the share price on the day of conversion? This is not the impression I have. My understanding is that it is the 50% of price agreed upon on the day the loans were made against the notes. I have to admit that this is one of the biggest worries for me about the company - I have made no secret of it - as the outstanding debt, if fully converted, will triple or quadruple the OS, if the conversion price is based on the day the loans were made, it will be in low triple zeros on an average. If on the day of conversion, this worry simple disappears and I will be extremely happy - this will lead to may be 10-20% increase in OS, even less as the share price moves up. Can you confirm the conversion rate? Can you point me to the official company pronouncement on this? Why do the financial reports say every time that "... unable to pay on maturity - term extended with new conversion price ..." or to the effect? If it is the price on the day of conversion, there is no need for ".. new conversion price ...". Please throw more light on this. I am very keen to have this clarified. I will be a lot more bullish than I am already and shed all reservations if the conversion price is based on the market on the day of conversion. It is a non-issue in that case.
Most investors will make substantial profits even with those crazy low triple zero conversion, but to lose a factor of 3-4 through OS increase from these conversions will be great to avoid. Note that any further loans needed in the immediate quarter will not result in OS increases of any concern - it is the existing notes that are of concern. Many are already in the black by good factors, it is now only a question of how much more gain. Will it be ~ x10 or ~ x30-40 more - this depends on the conversions.
China Cat: This is a question to ask at your meeting tomorrow: what are the terms of conversions on the existing IBEX and related party notes?
Thanks!
