No guarantee the float reaches 130M.
IMSC owes DMRJ (using rough numbers) 50M. IMSC can give DMRJ (I believe) 90 days notice that they're going to pay them back, which would wipe out the convertibles.
So, one might be tempted to think, "Oh, 90 days. That means DMRJ has time to convert everything to shares, since IMSC will be out of debt."
That doesn't really make as much sense for DMRJ though. Their best scenario is to meet IMSC in the middle somewhere, certainly giving themselves several million, or tens of millions, of shares. But, of course, the value of a co. with a lower float means a higher S/P. A higher float equals a lower S/P.
DMRJ will own tens of millions of additional shares, but it is still in their interest to keep the float lower, if they feel IMSC's market cap will take off.
So DMRJ should try to balance their holdings with float and market cap in mind, to maximize the value of their holdings.
Make sense? Did I miss anything?
(I have a post on the other board, titled "DMRJ, IMSC and Financing" from Wed., where this is discussed also. The only contrarian argument I got to the post was whether DMRJ has confidence in IMSC, and I am not worried about that.)
