The Convertible Note broken down, page-13

(For anyone new to Mustang and unsure what the talk of Arena and CN's is all about, the post at the top of this thread should help make sense of it)


Updated breakdown to include yesterday's conversion and the draw down of Note 4 last week.


The last row shows the hypothetical value of the issued shares (and options if exercised) as at today's close of 9.6c if they had been held. I have also added in an estimate of the outcome if they had sold them all. Since we haven't seen a 'substantial holder notice' we know they are not holding more than 33mil shares at most. We don't get any info on what they sell and when, so I have used VWAP's proportionally across obvious volume days around/after each conversion to build an estimate of what they may have sold for. @Amida has kept track of the likely selling via broker data which will be a more accurate way of tracking sales, but for the purpose of demonstrating the value of the CN my method is sufficient


Summary so far:

Note 1 & 2 are now fully converted, note 3 almost completely converted ($100K remaining), and note 4 is still outstanding ($3mil).

MUS has received a total of: $8.5mil
for notes issued to the value of: $10mil

Note holder has converted: $6.9mil (69% of total notes issued)
and received 107.3mil shares (Avg conversion price: 6.43c)
worth (at current SP): $19.85mil (Estimated average selling price: 13.3c)
plus 64.8mil options
if exercised, worth (at current SP): $12mil

If the options are exercised
MUS will receive an additional $5.52mil

The note holder still holds unconverted notes to the value of: $3.1mil






Note 1 to 4 have now all been issued. Notes 1, 3 and 4 include options.

Price and number of note 1's options ('A options'), were specified in the CN conditions, but the 'B options' associated with notes 3 and 4 are calculated when the note is issued. The number of options, and the strike price for 'B options' is calculated using the closing price the day before the note is issued.

Also relevant to the CN are the options issued to corporate advisors. I have not included these in the breakdown