China-Biotics, Inc. (CHBT)

[viking86]

Just 3 more days until Pope's converting or cashing out. If they cash out, they get paid approx $14.3/sh I think, that's about $29.7MM cash. At current SP below $12, I think they will cash out. If they do, that will reduce the O/S by 2.08MM shares instantly. If Company is also buying back shares this Q, we may even hope to see the O/S reduced by 2.5MM shares or so by the end of Dec (which is Q3). Instant lift of the eps by same %. Also, no more messy non-GAAP adj of the convertible shares from here on. Isn't that nice?

If Pope still likes this co., they may turn around and buy shares on the open market. With $30MM they can get 2.5MM shares at $12/sh which would make them a 10%+ owner. That would be a huge boon for the stock. Equivalent to a buyback of 2.5MM shares, plus another 2.5MM shares in strong hands. That's like 25% of the float locked up. Can you imagine what a squeeze that would mean?