a sucker born every day, page-6

Mate if I wanted to downramp I would be belting all and sundry with facts on a daily basis (ie the cobalt price seems to be dropping as I said it would). Although plenty here do not understand the instruments CMR are playing with none can say they haven't been warned.

Please do some research on convertible notes. The basic conditions applicable to all con notes include the following:

Loan funds to company at set interest rate and repayment plan.

Loan repayable in cash at maturity or at agreed share price at the con note issuer's discretion.

The agreed converting price is usually at a premium to current price making it more attractive to shareholders than a placement at current prices while giving con note holders upside if share price goes for a run.

Downside for shareholders comes if they don't have cash come payment date and the share price is under agreed conversion price. The note holders are secured against the companies assets and given they ask for cash payment but company is broke shares are issued at the lower prices, usually defined by a VWAP formula.

Today's CMR announcement is typically misleading as has nearly everything they said over the last couple of years. The con notes ARE NOT A PLACEMENT. If the CMR share price is under 42c the note holders will not convert into shares at 42c but at a lower market price. They hold all the cards. 42c simply marks the minimum dilution (say if event of a takeover) but in no way limits the maximum dilution.

There are many examples where con notes have blown up share registries, RSG in the late 90's for example. In fact wasn't the original CMR Cornell notes convertible at $3 odd but were being repaid around 30-40c in Sep? I throw out the challenge for anyone to give me an example of con notes that were converted at the set price when the prevailing share price was lower!

Me ranting, I think not. Facts and sensible analysis posted in relatively succinct manner take it or leave it. As usual posters here would do better learning the ropes and viewing ALL company announcements with a questioning stance rather than niggling the messanger. Ask yourselves when and how much HNC need to pay for control of the project? The answer is not much and not for a while.

cheers

PS If you hadn't noticed CMR is in the perfect storm!