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Re: SmuSmu post# 16636

Friday, 09/17/2010 11:21:03 AM

Friday, September 17, 2010 11:21:03 AM

Post# of 26968
Yes, it's called a secured convertible debenture and gives the holder stock at a discounted rate of up to 75%. Companies go to these loan sharks when they can't secure bank loans, and have no assets to pledge for any type of conventional loan.
These convertible loans can cost more than twice the principle, but are attractive in that repayment comes from shareholders.

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