Whether you think it's a good idea or not doesn't matter. This is what's done all the time when warrants offered. Not a coincidence that's what happened yesterday and could still happen.
In order to get into that PP you had to be a credited investor so this was for the big boys. This is also how they minimize their risks. This still is considered a speculative stock. I know someone who did exactly this yesterday. He's a much more seasoned investor than me.
Someone who bought in to PP believes that share price will be much higher in two years cause that's how much time they have to buy shares at .715 and it better be much higher or we are screwed. Remember you can buy anytime up to two years. No tax implication as it was done in a tax free account. They are also getting 9% on Debentures which can be converted to shares as well at .65. So effectively they are replacing shares.
"I have enough confidence in this company that I'm happy being an owner today, rather than in a year. "
Future, these credited investor also have confidence do have confidence that it will be much higher than .715 over the next two years. Many of them are insiders that bought in and current institutional holders. Again Future they don't have to wait two years, they can convert anytime over the next two years.
Remember in the future when ever you see a PP and warrants being offered in you own shares in the company, this will happen, a short term pull back.
Future, over the next two years do you think this will be much higher than .715? You have said that you believe it will be much, much. much higher.
I know someone who did exactly that yesterday. He is a credited investor and much smarter and better investor than me.
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