The notes will prompt a larger pool of shorts no matter what the conv price. There will be arb opportunities so there will be equal but opposite positions. The SP is just going to fall over over the med-long term.
This little spike we r seeing is solely due to the co. being funded now which was a problem hanging over it for a long time yet no one seemed to realise the need to raise funds and the fact that the notes need a higher reference price. This raising is an act of desperation yet no one seems to see that. The cornerstone inv is based in a well known ASIC tax haven, the raising itself has again gone to Pattos (watch what happens after the issue), and the type of securities are notes reflecting the credit quality. The dilution is going to be terrible.
Not a good time to buy.
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