Well, I have to confess that after several months of thinking I understood the most basic terms of the convertibles, I am not sure anymore. I can't tell from reading the 10K, as it is not straightforward in the slightest - at least to me it isn't.
Several here have clearly(I thought) said that upon a buyout of refinancing by a third party, all principal owed to DMRJ will be converted to shares, or so I thought. Buff says no way, that upon a buyout OR a refinancing event the option to convert principal to shares is gone.
So, does anyone here know for sure? It's so basic a question that I'm embarrassed to admit that I don't know. And yet, if someone forks over the owed principal to DMRJ it makes a HUGE difference whether DMRJ can convert that money to shares at the set strike prices or not. Will dilution to the tune of some 80 million shares or so of the owed principal occur or not?
If all that really can convert is money that is actually DUE BUT NEVER PAID-- ie interest that has already accrued -- then that is not nearly so bad as if the principal can also be converted.
What Buff says makes more sense to me now due to its simplicity, but, I sure thought the consensus here we should count on all of the shares as eventually getting converted under any scenario.
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