In addition, Pala has the right to convert the principal amount of US$15,747,473.45 (the Principal Amount) and any interest and fees accrued under the loan facility (the Interest and Fee Amount), each at the conversion prices set out in the Third Amended Agreement.
Based on the Principal Amount and an Interest and Fee Amount of US$5,153,188.20 outstanding under the loan facility as of the date hereof and assuming (i) an exchange rate of C$1.3378 for each US$1.00 (the Bank of Canada rate for June 6, 2019) and (ii) using a conversion price of C$0.39 per Melior Share in respect of the conversion of the Principal Amount and C$0.35 per Melior Share (the five day volume-weighted average price of Melior Shares (on days that trading of Melior Shares occurred on the TSX Venture Exchange)) in respect of the Interest and Fee Amount, the loan facility would be convertible into a total of 73,714,828 Melior Shares.
International Resource News-26 February 2010-Suzlon Energy's board approves reduction of conversion prices for convertible bonds(C)2010 ENPublishing - http://www.enpublishing.co.uk
India-based Suzlon Energy Limited (Suzlon Energy) (BSE: 532667) has announced that its board has approved the reduction of conversion prices for its overseas convertible bonds.
"There's uranium prices and then there's conversion prices
," Krahn explains.
PIPEs have been infamous for something known as a "death spiral," which is essentially the dilution of the company's stock price as a result of the issuer failing to set fixed conversion prices on the convertible securities in advance, instead of at the time of conversion.
Terms are also quite flexible, and can be written to favor either the issuer or buyer; conversion price, dividend, redemption, covenants and protective restrictions, and warrants are all fair game in negotiations.
But since the collapse of the bubble economy, stock prices have fallen short of conversion prices
for many issues.
Approximately $117 million in principal amount of the debentures has been converted into equity at a conversion prices
of $40.12 per share of common stock, while the remaining $33 million of debentures were redeemed for cash.