coal,
but many times these convertibles are issued at specific discounts, at a % discount of the average of the day, convertible at a % discount based on the average price for the previous 10 trading days, etc.
Absolutely,
There is not only huge upfront discounts when we sign the loan agreements but the CD holders got payed the first of every month and yes, they are discounted 90% of VWAP for 10 trading days prior
to due date. So, we now have a conversion number.
EXAMPLE: We owe debt holder $1MM. The conversion price is calculated at .10..Debtholder receives 10MM shares. This transaction takes place between ACT and the debtholder. ACT notifies Transfer Agent to transfer shares to said debt holder or holders account. The 10MM shares is now available to hold or sell as they see fit. No stock exchange or reporting facility would have any idea where or how they were received. With this transaction occuring between two parties, please tell me how your statement below can possibly apply? Coverting their option? What option?
It means an order that was placed by someone converting their option outside of market hours, and the price is determined by the days action.
