InterDigital Inc (IDCC)

[jealmc79]

The simplest way to understand it is the bond conversions are conversion price (which goes to cash on conversion) + hedge ( whatever the stock price is on the day of conversion minus conversion price ) . Then you get $109.43 times the number of warrants exercised. That is how you get about $110 per share.

Huh? That's about as clear as mud.

The easiest way to understand it is, once IDCC pays back the $126,174,000, plus whatever interest is owed on the 2024 notes, the hedge and the warrants will cancel each other out unless the stock price is over $109.43. If the stock price is over $109.43 then IDCC will have to issue shares to the warrant holder in accordance with the table on page 29 of the latest 10q, or maybe a cash equivalent, hence the extra dilution. That's why it makes no sense for IDCC to be buying shares at a price higher than $109.43 at this time.