current shares on issue

Time to understand the current shares and notes on issue.

Currently 255million AZZ fully paid ordinary shares.

Currently 15million notes (AZZG) issue price $2.00 each.

Plan to issue 35 million notes to raise $70 million.

Notes earn 10% per annum.

Notes may be converted to 3 AZZ ordinary shares.

When notes are converted probably around the time that AZZ shares are worth 74 cents (the value of 3 shares plus 10%)
return to holders, ie money back plus 10%.
From there on holding notes is not as beneficial as to holding shares.
The dilution effect! forget it.
On full conversion of notes there will be a futher 150 million shares added to the register, bringing the total shares on issue to 405 million AZZ shares and Zero AZZG notes.

If AZZ acreage is correctly managed, the results will be very lucrative for share holders.
It will take 12 months to see the change of direction that management are implementing.
I expect a steady increase in SP as current well results are published.
As of the 17/2/14 the company will be active in the buyback of Ordinary shares.
Today saw the stock traders take a hit. Long term holders can only benefit from here on.

Cheers IFINO