melua's bbi restructure, page-26

Melua, the problems I foresee here are:

1) A cornerstone investor will never agree to invest before BEPPA is resolved. The new investor would never sign up to being diluted by that post-investment. They will want BEPPA to convert first, and then they will want to massively dilute on top of the result.

2) The cornerstone investor will probably want to make 10% on his investment and then invest in a convertible note, so there's a good chance that our dividend might get sucked up by the new investor.

3) An investor in a convertible often shorts the common to hedge the investment, so that might in turn put a bar on the stock price for a while.

If this is the future for BEPPA, we really are in a hard place.