A lot of speculation/concern around why would someone convert...

A lot of speculation/concern around why would someone convert the notes at a premium so soon after getting them and forgo the interest.

I have no idea.

Surely we can all agree though, that if someone had the funds in the first place to purchase the notes then they are not a dud.

Why convert and effectively pay a premium and forgo the 7% interest?

I like the idea that it's locking in a set price to build a large position in one hit rather than on market.

There's also merit in looking to take part in a potential cap raise as well if there's an offering to existing holders

Here's another thought on why convert so soon. The intention was always to take a big position.

If I am said investor and I think that the time is near for this thing to hits its true potential then that is likely to unfold over the next 12 months as we get closure to full production, maybe earlier with BFS and funding announcement looming.

The premium is justified as I can get my positon sorted rather than try to accumulate on market in small parcels (people are starting to take note) and I think this is a multi bagger so having a position is more important than lowest cost base

Why convert now and forgo the interest? participate in a cap raise? maybe, maybe not.

If I am a sophisticated investor (which I am not) and I think this think has a big uptick coming soon then if I convert now and own the shares now then I start the clock on CGT and 50% discount. (after 12 months)

If I am a sophisticated investor, maybe I see or am presented with lots of opportunities, so I don't want to wait and hang around for years. If I stick in this for 12 months and the price hits 25cents (for example) then I have a 300% profit (I know that's not exact) . It may go higher in the next 12 months after that who knows, but to get to a 400% profit from that point may be another 100% on my initial investment but its really only 25-30% up on the value of my 300% profit.

If I am sophisticated investor I may prefer to take my 300% profit and put it into the next thing I am looking at that is a multi-bagger and try and get 300% on that. I don't want to get smashed with tax along the way though, so I convert my notes (my buy in) as early as possible to start the clock so I can get in and out and also try and cut the potential tax by 50%.

The uptick justifies the premium the potential tax saving justifies forgoing the interest.

All in all I choose not to be suspicious (perhaps I am just naive) I cant think of any motivation to convert other than a bigger prize.......

Just a thought.........


PS As always I have not fact checked any of this, (most of it is just guessing anyway) but I am aware of how tax works.

GLTAH