convertible notes questions, page-10

Plough...I'm not sure what to make of this...and if you are suggesting that on a conversion that the company can simply issue 4 shares for every 1 note..then I'm concerned.

Particularly at the current prices.

But...that's not my reading of the document and I have quoted it below because it does contain some oblique legalise as only a lawyer could write. Here goes:

"The changes to the Deed agreed by Sandhurst Trustees on behalf of Noteholders include giving effect to the mechanism by which Convertible Noteholders receive an adjusted number of Shares or Stapled Securities on conversion and how the conversion amount will be applied. Simply, where a conversion occurs and Stapled Securities are to be issued, the Convertible Notes will be redeemed by the Company, the redemption amount will be applied to the acquisition of Shares in the Company, and a capital return will be paid against those Shares which itself will then be applied to the acquisition of the units in the Trust. The Shares and units resulting from the conversion will be Stapled Securities"

My take is that on conversion, the company redeems (at face value of 65 cents 'cos that's the definition of "redeem")...and then it applies the proceeds to buy shares...presumably at market value or some other mechanism.

On this basis I don't see the face value of BECG of 65 cents at threat.

But I'm sure this issue has come up before and someone has the definitive answer and I'd be very appreciative to find out.