Helios and Matheson Analytics Inc (HMNY)

[chereb19]

The bold statement below suggests the notes can't be converted to shares if (buyer) owns over 4.99% or (affiliates) owns over 9.99%. This statement is on all the investor notes that are outstanding.

Does anyone have experience of these type of notes and if so is this as black and white as it seems. The pre-14 that was released said Hudson owned about 45% of shares but includes shares linked to investor notes that are yet to be converted.


Beneficial Ownership Limitations on Conversion and Issuance



The Convertible Notes may not be converted and shares of the Company’s common stock may not be issued under the Convertible Notes if, after giving effect to the conversion or issuance, the Buyer together with its affiliates would beneficially own more than 4.99% or 9.99%, as elected by the Buyer, of the Company’s outstanding shares of common stock. At the Buyer’s option, the ownership limitation blocker may be raised or lowered to any other percentage not in excess of 4.99% or 9.99%, as elected by the Buyer, except that any raise will only be effective upon 61-days’ prior notice to the Company.