While the company will have sufficient cash to repay the convertible debt and for shareholders it will be the best outcome in this rising gold environment, its up to the lender to decide what to do. He has the option to make the conversion. And unless there is some hidden feature in the contract which I have not noticed, HRZ doesn't have the ability to block the conversion. So assuming that the share price will be well above 4.2c, the lender will convert and maybe immediately sell it to some pre-agreed counterparty. Lets assume the price is 10c in November. Why would they not use this opportunity to convert and book a nice profit of more than 100%? And there will be many interested parties to take over part or the whole equity stake. I don't see a reason why they would not use this option.
HRZ Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
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