Hey @roboconnor, good question.Starting with your last...

Hey @roboconnor, good question.

Starting with your last question/statement: your thinking is correct. With a share price above $0.606 (being $0.515 / 0.85) one would expect a note holder to convert to shares. However, timing matters -- with 8% on the notes (while MOZ may be a while of resuming dividends) and higher order ranking there are benefits to being a noteholder. Therefore it would be entirely reasonable for investors to retain their notes until close to the 3 year maturity.

There are also benefits to being a noteholder if the share price takes a dive. Sub $0.25 there is more value in getting your $1.00 back and buying the shares on-market. This is of course subject to liquidity -- if you hold more than, say, 200k units, it gets a bit tricky.

As for best case scenario, I think this ultimately comes down to whether you want a smaller (diluted) part of a bigger pie, or run the risk of there being no pie at all. IMO it was pretty line-ball as to whether MOZ needed the cash to "get by", but if I were a director I'm err on the side of caution and so as they have done: buy the buffer. Yes it dilutes shareholders, but in the process you/we get cash that makes the future much more certain.

This point deserves emphasis: this business earns almost (and in some case more than "all") their profits in H1. If COVID were to drag lockdowns into the New Year there is a very real risk this business could be sunk. I think we will be open before Xmas, but in the event I'm wrong the extra cash buys breathing room to get us into FY23.

All the best, stay safe and get the jab.