nannook whats th, page-9

I'm no expert on this so will wait to be corrected...

but i thought that, lets say KRL wants $10mill it can do a placement for the $10mill. If the shares are currently 11c and given the current market and the share performance the placement would have to be at a fair discount - say 9c a share. That means current shareholders would get absolutely killed with dilution and also would demonstrate little faith in the share price.

if however KRL uses a convertible note it might pay a less than commercial rate of interest (that's ok cause they'll be able to afford that) and the shares into which the debt can be converted might be offered at a much higher price - lets just pick 15c for a number. So the shareholders don't get AS killed with dilution (although there is still likely to be some dilution) and the agreed share price for conversion shows some faith in the future of the company.