So as I've demonstrated multiple times, despite what you say, the selling price does actually determine L1's profit (so they do care what the selling/dumping price is) - and their profit is not at all fixed at 18% (as this is variable dependent on the selling price).
Now - what you are pivoting to and asking now is:
What is the amount of additional shares that they should receive in scenario A vs B?
Scenario A - Take $1.2m and buy off the market at the 2 day VWAP
Scenario B - Take $1.2m, loan to XPE, and then convert that debt to shares
The answer to that question is - scenario B always yields 15.8% more in shares than scenario A does. No matter what the
CONVERSION price is.
That is different from your 18% figure - and that does NOT mean that their actual profit realized on the transaction is fixed at 18% - as that all depends on the selling/dumping price. So they 'don't care what the 'conversion price is' (rather than selling price as you said)- as long as there is enough market support to allow for a selling price near their conversion price.
This of course, ignores the fact that the true conversion price has a round down feature, which in execution introduces variability to the 15.8%. It also ignores the fact that Scenario A is pretty much impossible to occur - as the odds of them purchasing at the exact 2 day low VWAP is basically impossible.
See below. Also - I can't wait for your calcs
@RealRockerfeller where L1 earn fixed 18% profit and selling price doesn't matter. And you 'prove my numbers are significantly mistated'. But I'll let you convene with your team of PhDs at the big boy table and get back to me later.
