Hey @Stockcount Think you've missed the fact that these notes...

Hey @Stockcount

Think you've missed the fact that these notes bear annual interest of 8.35% - and when they convert the note, there is a clause that any unpaid interest for the entire term of the debt is immediately accrued. So when they convert, they automatically receive 25.05% interest via shares (or 3 years at 8.35%).

So even though they are paying at a 120% premium of the 2 lowest daily VWAP for the 5 consecutive days prior to the conversion - they are up 5% on this difference alone (assuming no share price movements).

Now let's also not forget that tranche A and B had a combined face value of 3.33m, yet we only collected $3m. So you can see how they are immediately in the money and it's in their best interest to completely de-risk, dump shares and take profit.

Or in other words they loaned us $3m cash, but then said that we owed them $3.33m, then when they convert that $3.33m into shares, they tack on an immediate additional 25.05% for interest - and then pay a 20% premium on pretty much the lowest sp of the last 5 days (technically the 2 lowest daily vwaps).

So you can see why everyone is complaining about the CN deal. You can also see why the CN will want to immediately dump, remove risk, and take their nice profit and run.