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hugh_jackoman

09/17/10 11:20 AM

#16639 RE: SmuSmu #16636

The convertible debt is not paid back.

If it was would Gelmon be involved???

HELLO HELLO???

History doesn't lie.
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liable

09/17/10 11:21 AM

#16640 RE: SmuSmu #16636

Yes, it's called a secured convertible debenture and gives the holder stock at a discounted rate of up to 75%. Companies go to these loan sharks when they can't secure bank loans, and have no assets to pledge for any type of conventional loan.
These convertible loans can cost more than twice the principle, but are attractive in that repayment comes from shareholders.
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paperboy22

09/17/10 11:24 AM

#16641 RE: SmuSmu #16636

If they can demonstate buisness potential a loan would be easy to come by.