The bondholders don't miss out on dividends their equity...

The bondholders don't miss out on dividends their equity allotment is recalculated to maintain 10% pro rata after allowance for any divs and equity issues that occur prior to conversion. Their 10% value remains and cannot be diluted, except perhaps for employee rights issues.

The only downside for them is if they go to sleep for a month and miss a VWAP rise of more than 160% and fail to voluntarily convert. Probability 0.

The holders hurt the most by this equity dilution in straight $ terms will be the biggest holders. That will be magnified if those holders also happen to be shorters.

So if a large holder was shorting LYC in expectation of a cap raising and they effectively forced the SP down by half and they have a lot of outstanding shorts to cover and they weren't party to the cap raising and they even lost the debt facility they already had, I guess they'd be coughing Port down their ties over drinks tonight.

Be careful what you wish for.

I'd also expect a bit of pay back. I wonder how that might pan out.