elohssa....re vphm. No, this is not additional dilution. The bonds that are being converted here have been counted in the eps. Company has succeeded in having institutional investors voluntarily convert most of these bonds over the last 9 months and is involuntarily converting the balance in June and July, about 30 million.
The conversion of these bonds into millions of shares of stock at 2.50/share would seem to spell disaster but the conversion has gone smoothly and the stock has gone up during the whole process. This speaks to the strong fundamentals driving the stock price.
After all the dust is settled, there will be something like 58 million common shares out. Most important issue in removing the converts is that there won't be a noncash derivative income/expense item on the P&L. Company mgmt recognized that this would create uncertainty in the earnings expectations and hurt the stock price. Converting these bonds was their short term priority. They have done an excellent job of managing expectations. I expect further stock appreciation from here based on the completion of the conversions and the increase in revs from their Vancocin drug. Bobwins
Market Data 
Markets 
AI
