there is plenty of reward in those nice interest rates we pay...

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kastin

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28/08/17

11:32

Post #: 26802024
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Originally posted by blackcap ↑

Hi guys and girls,

Spoke to my partner about this yesterday (she is a professional director) about the potential for conflicts of interest etc. But she first intimated that when issuing convertible notes etc a note holder would be pretty stupid to accept on where the company (BRL) had a right to redeem at par. The note holder is lending to a potentially struggling company with the expectation of some reward should the company perform. IF they company does not then the capital could be gone. That is the risk for the reward. A noteholder that accepted a note where the company could exercise at par well its just ridiculously stupid. If the Sp goes up and the coy does well in the BRL case the company would purchase back at par. If the company failed then they would issue worthless shares. Either way there would be no reward for huge potential risk.
About the directors and their notes.... a directors first responsibility is to act in the bets interests of the company. So if they deem that converting them is in the best interests of the company then that is what they will do. I spoke to Toko Kapea at the last AGM and voiced my frustration that we the retail investors could not participate in the capital raise where the directors had gotten themselves nice allocations. He did say in the future there might be a look in for shareholders. I will grill him at the coming AGM. Will be interesting to see what happens on market today.

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there is plenty of reward in those nice interest rates we pay the note holders until conversion or redemption.

BRL Price at posting: 14.0¢ Sentiment: None Disclosure: Held
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there is plenty of reward in those nice interest rates we pay...

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there is plenty of reward in those nice interest rates we pay...

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