I am not an expert, but I think this is the relevant section from page 17 of the Notice of General Meeting, where everyone got the 21st September date.
(Conversion Price)
The number of Shares issued will be equal to the aggregate principal amount of the relevant Convertible Notes divided by the Conversion Price.
No Convertible Notes are convertible prior to shareholder approval.
The Noteholder agrees without limiting the paragraph above, not, before 20 September 2017, to convert more than 50% of the First Tranche and Second Tranche Convertible Notes issued to it provided that if one or more of the following has occurred at any time before that date, the Noteholder is free to convert any number of those Convertible Notes without restriction:
(i) over a 15 day period, the average daily trading value of Shares on the ASX is less than $10,000 AUD;
(ii) the closing share price on the ASX is below $0.03AUD;
(iii) The closing share price falls 25% or more over a two day trading period from the highest Closing Price per Share which occurred on or after the date of the Convertible Note Deed;
(iv) a “material adverse change” has occurred;
(v) the Company fails to file annual or quarterly reports;
(vi) the Company fails to comply with any ASX Listing Rules. The Noteholder also agrees not to convert any Convertible Notes, exercise any Options or make an election to receive Shares, which would result in the Noteholder holding a relevant interest in more than 19.9% of the issued Shares (or such other limit prescribed by section 606(1)(c)(i) of the Corporations Act from time to time), except to the extent permitted under section 611 of the Corporations Act.
If I read it right, 50% conversion has been possible for the 1st and 2nd Tranche since 5 days after the General Meeting, and converting the rest is now possible after the 20th September. I really don't understand it completely.
I don't think we dropped 25% in two days trading in recent times, from the highest to the lowest price, or did we? I could be wrong, and happy to be corrected or educated.
In any case the SP hasn't dropped off a cliff, even if they have been selling, just happened sooner than we thought, but over a longer time frame, which is probably good, and there is still the auction to come.
Cheers
gsmaree
MUS Price at posting:
8.1¢ Sentiment: Hold Disclosure: Held
