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what's convertible notes & it's effect ?
09-11-2019, 02:31 AM.
Post: #1
what's convertible notes & it's effect ?

can any guru please help me explain in layman terms what it means. very confusing about their statement.

thank you much in advance.

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09-11-2019, 09:08 AM.
Post: #2
RE: what's convertible notes & it's effect ?
Convertible notes are loans which provides the creditor with an option to convert the outstanding loan into shares of the company.

It is not generally considered an ideal form of financing for the debtor, since shareholders are likely to have their ownership diluted. So the better convertibles are those with low coupons, long tenure, and high conversion price; minimising financing expense, ensuring financing security, and limiting possible ownership dilution.

The link you provided has none of these details, so you have to read the term sheet of the convertible notes, to understand the implications it has on the company, and the value of its shares.

You can read up on other convertible-like deals, such as WB's General Electric investment in 2008.

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09-11-2019, 12:54 PM.
Post: #3
RE: what's convertible notes & it's effect ?
Quote:On December 18, 2018, the Company, Global Fintech Holdings Ltd., a British Virgin Islands corporation, or BVI Pubco, GFH Merger Subsidiary, Inc., a Delaware corporation and a wholly-owned subsidiary of BVI Pubco, or Merger Sub, BNN Technology PLC, a United Kingdom Private limited company, or BNN, Brookfield Interactive (Hong Kong) Limited, a Hong Kong company and a subsidiary of BNN, or BI China, ParagonEx LTD, a British Virgin Islands company, or ParagonEx, certain holders of ParagonEx’s outstanding ordinary shares and a trustee thereof, and Mark Gershinson, in the capacity as the representative of the ParagonEx sellers, entered into an Acquisition Agreement, or the Acquisition Agreement, pursuant to which, among other things, subject to the satisfaction or waiver of the conditions set forth in the Acquisition Agreement, Merger Sub will merge with and into the Company, as a result of which each outstanding share of the Company’s common stock and warrant to purchase the same shall be cancelled in exchange for the right of the holders thereof to receive 0.93 substantially equivalent securities of BVI Pubco, after which BVI Pubco will acquire (i) all of the issued and outstanding securities of BI China in exchange for newly issued ordinary shares of BVI Pubco and (ii) all of the issued and outstanding ordinary shares of ParagonEx for a combination of cash in the amount equal to approximately $25 million (the majority of which was raised in a private placement by BVI Pubco), unsecured promissory notes and newly issued ordinary shares of BVI Pubco. On June 5, 2019, BNN announced that it had terminated its tender offer to purchase up to 1,953,423 shares of the Company’s common stock in accordance with the Acquisition Agreement.
 an extract from

meaning the MICT & global fintech holdings both agree share is worth $1.41?

MICT will give out $1.41/share of $25m equilvalent shares to Global Fintech Holdings, to cancel out the convertible notes?

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