RE: As A long term Holder14 Oct 2020 09:04
Wow, Cranleigh and Rollin are quite right and bigkahuna you are dangerously wrong. Of course there's debt. The convertible has a maturity date, like all bonds, convertible or straight debt, but that doesn't necessarily mean they 'must' be converted into debt. The key of course is the conversion price. Because its so low - 6p - of course the holder will convert, though in the meantime there is no incentive for him to do so as he is receiving/will receive some modest interest until maturity (again, because this is debt). Should some unfortunate circumstances befall the company before that maturity in March 2021 however, and the shares collapse to below 6p, then the holder would no longer be incentivised to convert and the company would indeed owe him £330k. Because, you know, it's debt. The key for the bulls is that this is a tiny principle amount relative to company's market cap, so it really doesn't matter one way or the other.