Man Shing Agricultural Holdings Inc (MSAH)

[thebear37]

My understanding (although it is a very tough read so I could be off mark) is that the note was simply extended. The company did not issue 2.5MM share for the extension. The 2,5MM share reference refers to the shares that collateralize the note they will only be issued if the company does not pay the par value of the note at maturity. Msah has pledged over 37MM shares as collateral for two loans (most of which is preferred (covertable at a 10 to 1 ratio) that is why there is a big difference between basic eps for last 9 months of 16 cents and fully diluted eps of 7 cents. The latter calc. includes these 37MM shares pledged as collateral. The nice part of this is that when the notes get paid off these shares are no longer used when calculating fully diluted eps.

Let me know if I am off base .