1812 Brewing Company Inc (KEGS)

[crashman]

Soapy, do you still think convertibles are a secure way of raising capital w/o dilution?

Posted by: Soapy Bubbles
In reply to: janice shell who wrote msg# 80220 Date:10/25/2007 11:47:58 PM
Post #of 98782

Convertibles are a way to maintain a degree of control in a company, raise funds by selling them to external agencies, and controlling o/s. Rarely are they toxic unless there is a takeover attempt or major transition of ownership -- neither of which are in our near future.

The critical thing to realize is the conversion of common stock into convertibles and warrents is a secure way of raising captial w/o dilution. If your confused, think of convertibles as a way of bundling stocks in a security and then offer it to the purchaing party. In this way Tom and securitize excess share, reduce float, and ensure an income. In addition this assists buybacks by the same method above.

So don't freak about convertibles. They are a tried and true tool of growth and their purchase indicates that big money is interested in the stock.

But on a serious note -- read and learn before panicking.