Hi, back earlier than expected...
This may be incorrect, so please check:
1,670,00 shares converted = 10,000 shares
10,000 shares x $10/share = $100,000
$100,000 x 6% = $6000 dividend/year
Assuming not redeemed for 5 years, then 5 x $6,000 = $30,000 total dividend.
After 5 years: 10,000 shares x $10 = $100,000
Total Dividend = $ 30,000
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Gross (not including compounding) $130,000
Equivalent pps on 1,670,000 (not including compounding): $130,000/1,670,000 shares = .0778
Yes, tying up shares so MM's can't use them is good, but if PBLS isn't going to go above approximately 8 cents in five years, well, that's not what I was hoping for. What about those suggestions of 50 cents or $1/share, lol. Unless I'm missing something, I'd rather hold on to my common shares. Granted, if someone needs the income stream from the dividends, it may make sense. However, that assumes that PBLS will be able to make all the scheduled dividend payments and will convert at $10/share. There are risks involved in holding common and there are risks involved in converting.
If I've made some mistakes, please let me and the board know. In no way am I claiming to be an expert or experienced.
