The IRR on the note for the full 2 years is 12.57% - not including any uplift in the equity value of the company if converting vs redemption.
If all converted at 10-cents at some point, current holders are looking at 19% dilution for the on market securities, but all coming in at the current share price level of 10-cents which is good. So EV = $44m and $10m cash = $54m market cap.
If D13 can grow their cash flow from operating by more then 12.57% per year for the next two years, no one should be complaining. Personally, I'd like to see minimum 500% - 1000% growth in sales this year.
PS. feel free to check my back of a fag pack calcs
D13 Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
