Replies to post #7098 on ZNext Mining Corporation, Inc (ZNXT)

[makesumgravy]

Jim, your right. She could just do a r/s and be done with it. I don't really care about the debetures but its nice for her to offer. We can have a whole lot of nothing and let these floor traders keep at it, and the mm's keep making money and the brokers or we can decide to take the stock back!

[janice shell]

I don't think she can legally force all shareholders to accept.

I don't think she can either, unless she changes the terms of the "offer".

[rrufff]

Jim - what's your reasoning for thinking that shareholders would NOT accept the debentures?

If you think it's a scam, then you get nothing likely, but better to get stuck with a debenture than equity. May not help but arguably better, at least in theory.

If it's not a scam, then taking the debenture gives you $9500 on a $500 play after 5 years. If it's not a scam, the stock could go up more (reduction in float argument) or it could be diluted more.

By taking the debenture, you get the fixed return (again, assuming it's not a scam for the sake of argument) and you keep 10% of the shares, which would participate in any low(er) float runup.

Personally, I'd take the debenture.