Thought this might free up the other threads, quite amazing how many don't know the basic concept.
TV2U con notes simplified
The company issues a convertible note to the financier
The financier pays $1.00 to the company for the note upon issue
The financier then can redeem the note for $1.10 upon maturity. (making 10% on the investment)
Alternatively, because no security can be offered on the loan, the financier has the option to convert the note into fully paid ordinary shares that it can then sell or hold as it wishes. (making the note null & void)
No more money changes hands upon conversion of notes to shares. (that all happened on issue)
TV2 Price at posting:
1.7¢ Sentiment: None Disclosure: Held
