Michelex Corp (fka MLXO)

[sawdin]

It is true that convertible notes often result in an initial decrease in price. This can occur due to shorting by the fund, so that the fund can make money on the difference. Then, when the price is low, the fund can also pick up cheap shares to sell off when the stock price recovers and goes higher on expectations. Then, a massive sell-off occurs and the stock tanks. Check out the I-Box on this board:
Cornell/Yorkville

However, this is NOT THE CASE with Michelex. There will be no dilution of Michelex as the note has nothing to do with Michelex shares. The conversation is related to shares of Pristine Pharma Corp. and any conversation will not exceed 20 percent of Pristine's shares. As regards to the note, Pristine will continue as a subsidiary of Michelex.

Personally, as an investor in Michelex, I approve of the manner in which financing was obtained, as the note will not dilute MLXO via conversion into tradable shares of Michelex stock.