CFMTotally disagree!! These Rolling Convertible Bonds are...

CFM
Totally disagree!! These Rolling Convertible Bonds are unnecessary and will do nothing but Cap the SP!!

Consider this-
These Bonds will be converted to shares at 10% Less than the average of the lowest 5 days trading in the last 25 day trading period! At the moment as the sp has averaged 14c this is 12.5c a share!
We are due (overdue!) for an announcement on current drilling.
So the Bond Issuer has two options -
If the announcement is likely to be positive - convert the shares asap! Before announcement! Or if SP is likely to be negative ..wait another 5 days to convert to shares and get them at an even lower price! Say 10c!
Well let us see what happens??
Regardless remember they also have "loan" shares so can short sell if it suits them!!
IMO these Rolling Convertible Bonds are a RORT!

The Bond issuer cannot lose!!

A positive Announcement from CTP usually follows the Bond Announcement (DYOR) but the price gets capped again as the Bond supplier unloads shares for say 5% to 18% profit a time (Read a MONTH!)

These Bonds are a Rort! A better way to raise capital is to ask you and I to put in more money.. Those of us who are true believers will not sell down the SP.

Yes I can here some saying now "it is expensive to raise capital via Rights issues" but RCB's may be cheap but a RORT and will only cap the SP and make the Options worthless so potential capital from Options evaporates..

I feel so strongly about these RCB I feel that the Government should investigate them!!