A Nightmare named Magna, page-9

but that's just the thing sleuthtoo - they don't NEED to hold for higher prices!

Time is money and the discount in the contract is enough to ensure a guarunteed gain! they convert and they sell at market, making money all the way down, no matter what the shareprice. sure, a higher prices is a bonus, but better off just having the liquidity to sell into.

the lower the shareprice, the more shares, so their gain is always the same. why would they bother holding?? they don't need to care about the prospects of the company. They are clinking glasses and lighting cigars when they sign the convertible contract, NOT when swala make any real progress. For them, the money is as good as bankable the moment the deal is signed and the funds begin getting drawn down.

up, down or sideways, Magna could not care less, as long as there is market depth... people stepping up to buy "cheap" shares. shame they aren't, and can't by definition, be as "cheap" as magna gets them for, provided magna never hold on for too long. Which raises another good point - the longer magna holds, the more risk they take as others may sell the price down and compress their margin.

its beautiful really. If you are magna.