Please don't forget the notes are also paying 10% p.a. to the holders. They don't have to convert to shares, they can simply keep earning 10%p.a. Not too bad if you ask me. The fact that sooo many notes have been converted tends to make you think the specialists see a much better return in the shares.
Obviously Sandy didn't have much choice when it came to raising capital to participate in the extra drilling program. It is expensive money, but that said: if your drilling comes up trumps, it is well worth taking expensive money.
So far, it certainly appears to be a good bet.
Just as an aside, the main note holder Macquarie, hasn't followed the rest, but instead is maintaining the convertible notes, this suggests there may not be many more to convert.
Bear in mind there is also 9 million shares coming out of escrow in May.
Lets hope they are in solid hands
cheers Jake
BUR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
