I disagree, these types of ventures, are usually just to make a quick buck on basically a loan.
They give the company capital, they want their money back with interest.
These arent regular "shareholders" with am interest in the company.
They are investors interested in getting their money back asap, they might keep some shares if they've done research into the company but that's few and far between as far as these types of deals go.
I agree. I view this as positive. The company gets to keep the proceeds from what was originally a loan and removes the debt; and the original note holders opt to convert to equity because they think the value of Sigma's stock will increase.
As for present shareholders, yes, there is some dilution by virtue of the increase in outstanding shares, but this is offset by increase in book value with elimination of the debt.
News 
Market Data 
Discover 
