PHI Group Inc (PHIL)

[MasterFeldan]

No.

In simple terms, an investor gives a loan to a publicly traded company in exchange for convertible bonds. The bonds give the investor a right to buy shares from the company at a low, agreed-upon price. Essentially, it acts as collateral. If you don't pay those loans back, the investor can choose to recoup some of his losses by cashing in the bonds and allowing them to convert into the agreed upon shares... diluting the stock by adding to the outstanding shares count.