Eros Media World PLC (EMWP)

[naturalborninvestor]

This adds another spin to the story

Notes: Conversion All amounts due under the notes are convertible at any time, in whole or in part, at your option, into our A ordinary shares at the initial conversion price of $3.59, subject to certain adjustments, or the conversion price.

Notes: Alternate Conversion On or after the date that is four months after the closing date of this offering, a holder may convert all, or any part of, the note into A ordinary shares at a price which shall be the lowest of (i) the applicable conversion price as in effect on the date of conversion, and (ii) 90% of the lowest VWAP of our A ordinary shares on any trading day during the 5 trading day period ending and including the trading day immediately preceding the delivery or deemed delivery of the notice by a holder of a notice of conversion.

So, basically, after 4 months the notes holder can convert at 90% of the then lowest market price, not fixed at $3.59. The holder wins no matter what. If price goes above $3.59, they convert below market. If price keeps falling, they convert below market price and receive more shares.

Are the holders bullish or bearish on Eros' prosects? Let's see what the market makes of this.