IAHL Corporation (IAHL)

[stockrat]

Maybe.

This still is an OTC stock so the smart money is going to want to see their money back again and they are going to be very wary of dilution so common shares aren't going to be all that appealing to them. There always is the chance that the shares will vault in value, but they will want their money for sure.

I would imagine that there will some sort of senior bonds or some interesting twist with preferred shares and the common shares will be left mostly alone. Dilution is not in anyone's best interest outside the company and that is the group that needs most be appeased.

Really, dilute the share price down when it's collateral on your debt? That will only serve to call your debt and put you real quick in a world of hurt a-la Enron.

So, my thought is that the debt won't be tied directly to common shares. I also think that there will be pressure on the company to improve it's market valuation and that can't be accomplished through dilution. Depending on the structure of the preferred shares and if they are convertible, that might be the course of action. It would still keep pressure on the company to keep the share price up and service their debt to avoid conversion of the shares, dilution of the common and a drop in price.

Then again, they might just surprise us with a really nice private bond placement.