Zeener2, Great find. I have to admit that I wasn't aware of this convertible arrangement. It's nice to see CEO putting in her own money, but it still warrants discussion. I am simply trying to understand the mechanisms in place here. After all, we are speaking about 650mill shares here...
- What happens after the maturity date 1st of July 2009, if Stacy would have decided not to retire the convertible bond by then? Will it simply be renewed and extended?
- Even if converted shares are restricted to sell (usually for one year) they would still increase the O/S, thus dilute shareholder equity, right!? Or are restricted shares handled differently?
- It was my understanding that as May 2009 there has not been any dilution over the last year. If restricted shares are not handled differently, am I right in the assumption that this CD means that at any moment there COULD be a massive dilution? Please prove me wrong!