I don't think you're getting it Steini. Zero shares have been issued.
What's been issued are Convertible Notes and Warrants (American terms for options).
Notes: Shares will only be issued as the Notes are converted over (up to) the next five years. The number of shares to be issued will depend on the conversion price which - as as been explained by others - will be between 4.94c and 1.9c. Unless IMU elects to redeem the Notes by paying cash (bahaha).
Warrants: AKA IMUOE-killers. These were issued for free and can be converted to shares if exercised at 4.94c each.
So no shares have been issued.
The lender can now make money by shorting all the way down to 1.9c.
The lender can also make money if it can figure out a way to sell the unlisted warrants.
Given that there are still people willing to pay 1.3c for options that expire in 1.5 years with an exercise price of 11.8c, options with an exercise price of 4.94c with a 5-year duration would be saleable at at least double this (Black Scholes values at 2.7c each based on 100% annual volatility). So effectively the lender has been given more than half its money back already in the form of free options.
Trading market cap for Paul and Leslie's salaries has been insanely expensive but more insanely accepted by shareholders year after year ...
IMU Price at posting:
3.6¢ Sentiment: Sell Disclosure: Not Held
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