The conversion of share price at 15c is the risk reward margin in entering into the transaction for blumont should the share price spiked when they covert. The interest rate is ultra low and they would have earn 4.2% just leaving it in the bank. They must have seen information that lead them to believe there is a high change the mind can be improved and that they can meet the debt obligation in 2 years time.
Just like I have made a punt in trusting management can do the right thing and that the share price will rise overtime except they have made an more informed choice.
Will see who are the winners in 2 years time.
DML Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
