babbling monkey calls brokers bluff and buys, page-10

This has been an amazing decline! True it has got to turn soon - I hope.

The one thing that really concerns me is the standby finance facility that we have been dipping into to finance the oxides. It is a convertible facility and I wonder whether they stuck a price to convert the loans to equity or placed a limit on the number of shares the bond holder can take. If it doesnt have limitations, the bond holder is sitting pretty to grab a very large chunk of CMR for 100 million. Not a bad outcome for someone that struck a standby finance deal at a share price north of $5.

$100 mill converted at $1.4 a share gives them 71.5 million shares or 36% of resulting fully diluted shares. If this were to happen it would be a travisty! It also shows that someone might have a considerable interest in keeping the price going lower.