Ann: Investment and Offtake with General Motors, page-52

mr shaq . . why would gm convert just because there is a rerate? why would gm spend 9.36 m now when they can spend it in 3 yrs time? that 9.36 m will cost them 7.5 m in 3 yrs even at basic irr returns they would achieve on using that capital elsewhere. gm are also limited to 10% holding per terms and if they want to participate in future raise (which they indicate they will) then they have zero incentive to convert options into fully paid shares.

whether the shares are worth 30 c . . or $3. . gm has zero incentive to convert before 3 yrs and every incentive not to. gm capital management 101.