Jim, I re-read the Mt Kellett deed over the weekend and concur...

Jim, I re-read the Mt Kellett deed over the weekend and concur with your calculations

I get at SP $0.75 MK getting 12.8% of the company, at SP $0.625 (half strike price) they get 15% and at $0.52 MK get 20%. So a low SP is worth a lot to MK over the minimum 9.6% they would othewise get if convert at $1.25. It would hurt other shareholders, but there's enough upside in LYC that most would probably wear the worse case dulution.

Max, Mount Kellet are a special situations/opportunistic fund that invests the money of a group of investors, a major one being Temasek Holdings, a Government of Singapore-related investment corporation, as I understand it. I'll leave it to the conspiracy theorists to mull over whether Singapore have any more that an indirect and passive investment in LYC given the influence they have with their neighbour and possible strategic interests in RE production.