pala converts a$14.8m of convertible bonds, page-2

Now why would Pala Investments AG (Pala) convert A$14.8 million convertible notes into shares before their redeemable date of 14 May 2012?

The redeemable price for the notes was $1.741 per share so effectively Pala just paid $1.741 per AVO share.

What do they know that we don't?

Q. Is there a significant positive announcement pending and they want to be ready to capatalise on it?

Q. Why would they sacrifice the 6% coupon rate on the notes and the safety of the company security ie. first call on assetts etc for shares when they could convert the notes anytime.

Q. Why not wait and see how the share price goes before converting?

Q. Why is there so much pressure on the AVO sell side? Is the recent fall in POG being used to downramp AVO SP prior to better news?

Too many questions and too few answers

Angers