Liberty Star Uranium and Metals Corp (LBSR)

[reaper247]

CDs can be renegotiated or rolled over with the holder or new lender.

The terms of notes vary, but many notes have a clearly defined due date.

With those terms, interest is converted for interest for the life of the agreement (often quarterly.) But after the due date, a big block of commons are issued on the principal all at once.

The company can negotiate with note holder to extend the due date to later on. The holder continues to accept small amounts of shares for interest, while keeping the company on the hook for the principal, but also keeping shareholders from getting dumped on with big blocks.

The company could also find a new lender to buy out the note before the due date, and delay the big block of converted shares until later.

To be clear though, I see nothing to suggest it will be the case here. I have just seen it happen on many other plays.

IMO and FWIW.