The convertible notes conversion rate is reset every 20 March by using the VWAP for the preceding 10 days. However, the reset value can not be less that 65% of the previous value. i.e. If the rate now is 54c, the rate at 20 March 09 will be approx 35c.
As an aside, I never liked how IDL provide very little information about Huddy's in their reporting & have been weary as a result. This is their major cashflow that keeps the interest paid & grows the rest of the business. I hope this doesn't bring the business down. They do after all have a very high debt.
IDL Price at posting:
19.5¢ Sentiment: None Disclosure: Not Held
