No you are not missing anything. Basically you should be paying a premium for oppies on the basis you have far more leverage when there is a fixed conversion price. ATM the oppies are .048 add .065 and we are looking at an all up cost of 11.3c with a current head share price of 11c. As the head share rises you oppies will rise simultaneously plus the higher the head shares go the more expectation that they will go higher which adds a premium to the oppies SP. While you are paying 4.8c others are paying 11c for the same thing.
example: lets say you have $110000 to spend
you could buy 1,000,000 head shares or 2,291,666 oppies
Lets say that within the next 18 months the SP goes to 25c
The head share buyer makes a profit of $250000 less $110000 = $140000
The oppies buyer makes a profit of $572916 less ($110000 + 148958) = $313,957
The higher the heads the higher the oppies profit margin c/f head shares buyer
MXC Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
