re: anyone out there following this one. Exception to every rule...

re: anyone out there following this one. Exception to every rule naturally but i see raising funds by convertible notes as a negative in almost every case . companies that raise funds by con notes are raising money this way because there is no alternative . it says to me banks wont lend them the funds as the bankers have considered the underlying company a credit risk . convertible notes are higher interest than bank rates compounding the credit risk . a robust and profitable company should not need to raise funds this way and EBT has been around long enough to prove itself . if and when the interest cannot be payed by cashflow there will need to be another fund raising to finance the debt . usually only one way to do that by issuing more paper . can get tough to issue more shares after a while without handing em out at substansial discount . the dilution debt spiral can usually be identified by the downtrending chart which in EBT case sems to be as clear as

............. bris